Analyst: Consumer confidence surveys have a pacifying effect on monetary policy

On 17 July, Samuel Tombs of Pantheon wrote that the consumer confidence index of the University of Michigan was still rising below last year ' s average. This indicator rose from 49.5 in June to 54.4 and exceeded the economists ' expectations of 50.5. According to Tombs, the expected decline in inflation has brought some comfort to the Fed. “It is true that Chairman Walsh may be a little disappointed because his hard-line talk about inflation has not further depressed expectations”, he said. According to Thomas, however, the “lack of leverage” of workers means that “wage growth is less likely to rise as a result of the recent recovery in overall inflation”。