Pantheon’s Samuel Tombs wrote the University of Michigan consumer sentiment
index rose to 54.4 in July from 49.5 in June, beating economists’ 50.5 forecast
but remaining below last year’s average. He said falling inflation expectations
provide some comfort to the Fed, though the Fed chair may be disappointed that
his hawkish remarks did not push expectations lower. Tombs added that workers’
limited bargaining power makes wage growth unlikely to accelerate in response to
the recent uptick in headline inflation.
