Analysts: Consumer confidence surveys have a soothing effect on monetary policy

On July 17, Pantheon's Samuel Tombs wrote that the University of Michigan's consumer confidence index rose below last year's average. The indicator rose to 54.4 from 49.5 in June, beating economists 'expectations of 50.5. Tombs pointed out that falling inflation expectations have brought some comfort to the Fed. "Admittedly, Chairman Walsh may be a little disappointed that his tough rhetoric on inflation has not further depressed expectations," he said. But Toms said workers '"lack of leverage" meant "the probability of wage growth rising due to the recent rebound in headline inflation is low."