Rising costs have raised concerns among Americans about their financial future and reduced their confidence in the economy, according to the University of Michigan’s monthly consumer confidence survey, released Friday. The survey found consumers were slightly more optimistic about the economy in September compared to the previous month, but far less than in April, when so many believed the arrival of vaccines would end the pandemic quickly. .
Only 30% of American households expect to be better off financially in a year, according to the Michigan survey, the lowest level since August 2016.
Jerome Powell, Chairman of the Federal Reserve, said Thursday that have blocked west coast ports, plant closures in Asia amid COVID-19 spikes and other global supply chain disruptions have lasted longer than expected. Keeping prices stable is one of the Fed’s mandates, along with the search for as many jobs as possible.
Still, Powell said he expects the supply chain to start improving next year, which could lead to lower inflation in the first half of 2022.
Some members of Congress – mostly Republicans – have blamed the sharp rise in U.S. inflation since this spring on sharp increases in government spending, including roughly $ 5,000 billion in financial assistance provided by former President Donald Trump and Biden’s $ 1.9 billion aid package approved last March.