Fed Meeting Looms as Consumer Sentiment Peaks | Episode 172 | 09-13-24

This week Megan unravels the latest shifts in consumer sentiment and economic expectations, revealing a refreshing uptick in confidence. She digs into the University of Michigan Consumer Sentiment Index, highlighting a rise in both current economic conditions and future outlooks, now at a four-month high. With inflation expectations for the next year dropping to 2.7%, consumers are breathing a sigh of relief, yet growing wary about the employment landscape.

As we gear up for a pivotal week, explore the anticipated Federal Reserve meeting and forthcoming retail sales data, which are essential indicators for understanding the economic trajectory. With an expected decline in interest rates, consumer sentiment is on an upward trend. Make sure to subscribe and share with your network. Catch up on our previous episodes for more in-depth economic perspectives at MarketsWithMegan.fm

Consumers are definitely feeling more comfortable with the fact that the Fed's going to be cutting interest rates. Next week. It is Friday, eptember the 13th, and this is your regular segment of Markets with Megan. We got the University of Michigan Consumer Sentiment Index this morning and this is the preliminary reading for September. What we saw was that the broad index actually rose for the second consecutive month and then when you look at the two components that is, expectations for the future of the economy as well as the current conditions on the economy both of these rose to a four-month high. The big story out of this report was that we've seen now four months of consecutive declines in the inflation expectations over the short run. So inflation expectations over the next year are expected to be 2.7%. That compares to a 2.8% estimate and then 2.8% in the prior month. So consumers are now getting more comfortable with the fact that inflation is decelerating, but they're getting less comfortable with the employment situation. One of the things in that expectation component was that that rose because of the fact that consumers are expecting interest rates to decline over the next year, so that increased their expectations for their sentiment in the economy over the next year. That's all we have this week.

Next week's a big week for economic data, don't forget. The Fed will meet. We'll get retail sales. This will be a very important week for economic data and we'll be back to report there. Have a wonderful weekend and if you like this podcast, please hit that alarm bell. Subscribe to us, share with friends, family or colleagues. And if you want a bigger history of our podcast, you can go to marketswithmegan. fm. Thank you.