SamuelTombs: Consumer confidence survey has a soothing effect on Fed's monetary policy

Pantheon's Samuel Tombs pointed out that the University of Michigan consumer confidence index rose to 54.4 from 49.5 in June, exceeding economists 'expectations of 50.5, but still below last year's average. He said the decline in inflation expectations provided some comfort to the Fed, although Chairman Walsh's tough rhetoric failed to lower expectations further. At the same time, workers "lack of leverage" means wage growth is unlikely to rise due to the recent rebound in overall inflation.