Americans’ confidence in the inflation rate remains unchanged despite recent disappointing reports on Wall Street, according to the Federal Reserve. The University of Michigan’s latest consumer survey shows that sentiment has remained stable over the past few months, with a slight decrease from 79.4 to 77.9 in April. Although sentiment has not returned to pre-pandemic levels, it has not significantly worsened.
Joanne Hsu, the director of Surveys of Consumers at the university, stated that sentiment has been consistent for four months, with consumers noting few substantial economic developments. Many consumers are adopting a wait-and-see approach due to the upcoming election, which is perceived as having a potential impact on the economy.
Despite this stability in sentiment, US consumers’ expectations of inflation have slightly increased in April. The Federal Reserve is closely monitoring this aspect to ensure that Americans have faith in a potential return to normal inflation levels. It is important for the Fed to keep an eye on this aspect as it can impact people’s purchasing power and overall financial wellbeing.
