US Consumer Sentiment Rises Despite Upcoming Interest Rate Hikes

Consumer sentiment was slightly higher than anticipated in the beginning of May, coming in line with revised April results.

The University of Michigan’s Friday report on consumer attitudes about the economy hit 98.8 in a preliminary May reading, higher than the 98.5 expected by a survey of Reuters economists.



Eight out of every 10 consumers surveyed by the University of Michigan expect the Federal Reserve to raise interest rates in the year ahead, according to chief economist Richard Curtin.

“The data will thus provide some additional points for both sides in the debate about the timing and number of future interest rate hikes,” Curtin said.

Curtin went on to explain that consumers “have a remarkable track record” for identifying whether the actual unemployment rate will increase or decrease in the coming years.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza