Why Consumer Confidence Is Key to Fighting Inflation | WSJ




Consumer confidence, sentiment, expectations… Whatever you call it, the measurement of how consumers are feeling about the economy is being closely watched by the Federal Reserve.

Why? Because consumer confidence can be a self-fulfilling prophecy: If enough people think inflation is going to get worse, it likely will get worse.

Advertisement

WSJ looks at how the two main measurements — the consumer-sentiment index and the consumer-confidence index — are calculated, and why Federal Reserve Chairman Jerome Powell has to not only bring down inflation, he has to make the public confident that he will.

Read more about why the Federal Reserve is trying to keep public confidence high on The Wall Street Journal: https://www.wsj.com/articles/why-consumers-inflation-psychology-is-stoking-anxiety-at-the-fed-11657013400?

Illustration: Adele Morgan

More from the Wall Street Journal:
Visit WSJ.com: http://www.wsj.com
Visit the WSJ Video Center: https://wsj.com/video

On Facebook: https://www.facebook.com/pg/wsj/videos/
On Twitter: https://twitter.com/WSJ
On Snapchat: https://on.wsj.com/2ratjSM

#ConsumerConfidence #Inflation #WSJ

Leave a Reply

Your email address will not be published.

Related Post