Samuel Tombs: Consumer Sentiment Survey Eases Policy Concerns

Pantheon analyst Samuel Tombs said the University of Michigan consumer sentiment index remains below last year’s average. According to Jin10, the index rose from 49.5 in June to 54.4, above economists’ forecast of 50.5. Tombs said lower inflation expectations have offered some comfort to the Federal Reserve. He added that Fed Chair Kevin Warsh may be disappointed because his hawkish remarks on inflation did not push expectations down further. Tombs also said workers have little leverage, making it unlikely that wage growth will rise because of the recent rebound in headline inflation.