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USA: Michigan Consumer sentiment bounces back from record low – Monetary officials oppose “too severe” interest rate hikes

The consumer climate surveyed by the University of Michigan rose 1.1 points from the previous month to 51.1 points, the university announced Friday after the first round of surveys. Exceeded analysts’ expectations. Consumer sentiment fell to an all-time low last month.

High inflation continues to weigh on consumer sentiment. About half of those surveyed blamed the sharp rise in prices for lower living standards, said Jon Hsu, director of the survey. At 5.2 percent, one-year expected inflation is lower than in previous months.

The University of Michigan’s indicator is a measure of the purchasing behavior of American consumers. It is based on a telephone survey of about 500 households. An assessment of the financial and economic situation and the corresponding expectations are queried.

Fiscal authorities against “extremely drastic” interest rate hikes

Atlanta Fed District President Raphael Bostick spoke out against raising rates “very strongly.” Otherwise, positive trends in the economy will weaken and uncertainty will already be significant, he said in a speech in Tampa, Florida.

After releasing the latest inflation data, the monetary watchdog initially did not rule out a rate hike by a full percentage point.

(AWP/Reuters)

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