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 head

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.