Posted on 01/23/2026 7:12:27 AM PST by abb
US Consumer Sentiment Surges, Beating Expectations and Boosting Dollar
The University of Michigan’s Consumer Sentiment Index, a critical gauge of current and future economic conditions, has reported a significant rise, surpassing expectations and providing a much-needed boost to the US dollar.
The actual index reading came in at 56.4, a substantial increase from the forecasted 54.0. This rise indicates a more optimistic outlook among consumers, which typically translates into increased spending and economic growth.
When compared to the previous month’s reading of 52.9, this month’s figure represents a significant improvement. The 3.5 point jump demonstrates a notable shift in consumer sentiment, suggesting an increasingly positive view of the economy.
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There was a time when you would wait because you expected prices to go down and they did.
Now it is buy it NOW before the price goes up.
Bttt affordability, the price of eggs etc. As usual, the MSM driven hysteria is wrong.
I am interested to see where the next spending bill goes. My guess is we end up with another shut down. The compromise will be to increase the debt.
That’s not going to go over well with the markets.
I worry that if the GDP hits the 5% to 6% in the first quarter, it will stop further rate decreases. A really hot GDP would result in a longer pause in rates or even a slight increase.
But, servicing the debt is going to be more of a concern going forward. Servicing the debt and increasing military spending at the same time if kind of a tightrope walk.
Well, in a sense it is unexpected considering that household debt and government debt are at record high levels, and business debt is also relatively high.
We are a consumer driven economy and the consumer is burdened with massive debt. Not saying that was Trump’s fault, its just an economic reality — as is the massive federal debt.
So growing an economy that is struggling under the weight of excessive debt could be problematic, assuming that interest rates and inflation do not substantially decline.
Biden created cumulative inflation of 27% in 4 years. Trump inflation was 2.7% during first year. Do simple math to know who created affordability problem.
100%.
The liars in the MSM will not want to cover this story...
Consumer sentiment is up, company earnings are up, gasoline prices are down in most areas.
After sinking in 2022, the S&P 500 rallied 25% in 2024 and 18% in 2025. Evidently, investors are confident that the Federal Reserve’s interest rate hiking cycle from 2022 is now in the rear-view mirror.
“Goldman Sachs analysts cited “Fed easing” as a factor that they believe will “help propel the US stock market this year.” The Goldman Sachs analysts reported that, as of January 6, economists projected two 0.25% interest rate cuts for 2026.”
High govt deficit spending is a fly in the ointment, difficult to assess its impact.
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