Still well below the pre-crisis level
US consumer sentiment brightened at the beginning of the year. The barometer for consumer mood rose in January to 89.3 points from 87.1 points in December, as the Institute Conference Board announced on Tuesday for its survey. Despite the increase, the barometer is still well below the level before the outbreak of the corona pandemic. For comparison: In February 2020 it was listed at 132.6 points.
According to the chief economist of the German development bank KfW, Fritzi Köhler-Geib, the US economy is struggling with headwinds: “The economic recovery in the US has recently slowed significantly.” Rising corona infections and the associated containment measures put a strain on the job market and households. The US Federal Reserve will therefore stick to its loose monetary policy in its interest rate decision on Wednesday until the US economy stabilizes.
