University of Michigan: Consumer sentiment rebounded in June, inflation fears ease

U.S. consumers have become less pessimistic about the economy and less worried about inflation since early June, a sign of progress in the global trade war.
The University of Michigan released the Consumer Sentiment Index on the 14th local time.
According to a preliminary reading of the 2019 FX Index, the index recorded 60.5 this month, well above market expectations of 54. This was 8.3 points lower than the previous month.
This backlash comes after President Trump declared April 2 "Liberation Day" and announced the imposition of high tariffs, then extended the reciprocal tariffs for 90 days and extended the suspension of negotiations with China.
The introduction of a trial period coincides with the trend of easing trade friction. Joan Shoo, director of the University of Michigan's research, said, "The announcement of the high tariffs in April and the subsequent policy confusion have led to a series of moves to ease trade tensions.
"Consumers appear to have recovered somewhat from the shock," but "broader downside risks to the economy remain."
Inflation expectations also fell sharply. The expected inflation rate for the year ahead was 5.1%, down 1.5 percentage points from the previous month.
This is the biggest drop since a year ago. The expected inflation rate for the next five years also fell by 0.1 percentage point to 4.1%. "Concerns about the impact of tariffs on future inflation are a major factor," said Shoo.
"The trade tensions have eased somewhat since June," he said, but added, "There remains a widespread recognition that trade policies could still contribute to future price increases."
On the other hand, the University of Michigan survey has tended to show higher levels of inflation concern than other market and opinion polling indices, but recently the Federal Reserve has
The Federal Reserve and other surveys have also shown that inflationary pressures are limited. Earlier this week, the New York Federal Reserve said the one-year expected inflation rate for May was 3.2%, down 0.0% from the previous month.
The Bureau of Labor Statistics (BLS) also announced that producer prices and consumer prices both rose just 0.1% from the previous month, indicating that the immediate impact of tariffs on prices is unclear.
The impact of the tariffs is not expected to be large, but economists expect the effects to be felt gradually in the coming months.
The Federal Reserve is set to meet the Federal Open Market Committee (FOMC) next week, and the market is
Interest rates are likely to remain unchanged until September.