Washington CNN —Americans’ attitudes toward the economy improved this month thanks to lower interest rates.
Americans’ expectations for inflation rates in the long run also edged lower this month.
“This month’s increase was primarily due to modest improvements in buying conditions for durables, in part due to easing interest rates,” Joanne Hsu, director of the university’s Surveys of Consumers, said in a release.
The Federal Reserve last month cut interest rates for the first time in more than four years, by a bold half point, in part thanks to inflation coming under control.
Lower borrowing costs make it cheaper for American shoppers to buy durable goods such as appliances, cars and furniture, which are usually bought on credit.
Persons:
” Joanne Hsu, haven’t, ” Robert Frick, Donald Trump
Organizations:
Washington CNN, University of Michigan’s, Consumers, Federal Reserve, Navy Federal Credit Union, University of Michigan