Consumer Confidence Seen As Weathering A Rate Hike

Jan. 13, 2005
By John S. McClenahen Although it runs counter to conventional wisdom, consumer confidence in the U.S. economy isn't likely to sink even if Alan Greenspan and his Federal Reserve Board colleagues raise short-term interest rates (again) next week. Two ...
ByJohn S. McClenahen Although it runs counter to conventional wisdom, consumer confidence in the U.S. economy isn't likely to sink even if Alan Greenspan and his Federal Reserve Board colleagues raise short-term interest rates (again) next week. Two reasons: historically low unemployment and stable labor markets. "Volatile financial markets and interest-rate hikes are not expected to have a significant impact on consumers' spirits," judges Lynn Franco, director of the Conference Board's Consumer Research Center in New York. "Confidence is expected to remain strong through the summer." The Federal Open Market Committee (FOMC) is slated to meet on June 27 and 28, and several leading economists believe that the recent falloff in construction and other unmistakable signs of a slowing U.S. economy will persuade the Fed to hold off on another hike in the federal funds rate. If so, the next scheduled time for adjusting rates would be the FOMC's Aug. 22 meeting, since Greenspan and company are slated to be vacationing in July.

Popular Sponsored Recommendations

3D Printing a More Efficient Factory Floor

Nov. 16, 2023
Today’s additive manufacturing platforms make it simple to print a wide range of high-performing industrial parts as soon as possible and right where you need them — unlocking...

Discover How an Eye Tracking Study Improves Training Procedures

Oct. 29, 2023
Did you know that your training processes can be streamlined by visualizing and analyzing key skills within your employee base? Find out how we use eye tracking to capture advanced...

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!