The Federal Reserve closely monitors Americans’ confidence in whether inflation will eventually return to the levels they are accustomed to. Despite recent disappointing inflation reports causing volatility on Wall Street, Americans have not felt any better or worse about the economy in recent months.
According to Joanne Hsu, director of Surveys of Consumers at the University of Michigan, consumer sentiment has moved sideways for the fourth consecutive month due to few significant developments in the economy. Consumers are delaying judgment on the economy due to the upcoming election, which many believe could have a significant impact on economic trajectory.
The latest consumer survey from the University of Michigan in April showed sentiment remaining largely steady, with a preliminary reading of 77.9 down slightly from 79.4. This sentiment is significantly higher than record lows seen in the summer of 2022 when inflation reached four-decade highs, but still below pre-pandemic levels.
Despite this, US consumers’ expectations for inflation rates increased slightly in April. The Federal Reserve is paying attention to whether Americans believe inflation will return to normal levels. The story is developing and will be updated as more information becomes available.
