Analyst: Consumer confidence becomes a key variable

GoldenOctober2024

Jin10 reported on May 8 that Adam Reinert, Chief Investment Officer of Marshall Financial in Pennsylvania, stated that while Powell and his colleagues might find some comfort in recent labor market data, the threat of further tariff impacts is very real, which could prompt them to take action in future meetings. From a macro perspective, we believe a key consideration will be whether actual data begins to confirm a weakening of consumer confidence, or whether consumers will continue to show resilience as they did in 2022. If the tariff negotiations of 2018 offer any lessons, it is that the Federal Reserve may need to adopt a less aggressive and more accommodative policy to help the markets and the economy navigate any potential pitfalls related to tariffs.

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