Americans Feel Good About Economy
The US market has performed well as of late, stoking Americans’ confidence and providing optimism for the economy in 2015.
Tuesday, January 20, 2015 - 00:00
A new poll from The Wall Street Journal and NBC News indicated public assurance regarding the US economy.
About 50% of the 800 individuals polled said they saw important economic improvements in the past year – the highest mark since the recession. Better than four in 10 expressed satisfaction with the state of the economic, which was the best reading in over eight years.
Analysts point falling gasoline prices, higher employment rates and several other indicators of economic growth as reason for the optimism. According to the poll, it is the first time in decades that nearly half of Americans believe the nation is not in decline.
Fed expected to raise short-term rates later in 2015
The Federal Reserve is on track to boost short-term interest rates later this year, reported The Wall Street Journal. On the other hand, long-term rate hikes appear uncertain as new investors are concerned about sluggish global growth, declining oil prices and stagnant consumer price inflation.
Meanwhile, the European Central Bank may launch more economic stimulus in the form of quantitative easing as early as Thursday. The ECB hopes the move would fight back the threat of deflation – something that Japan has grappled with recently.
Both moves will have serious implications for the health of markets across the world. Already, investors have been pushing the value of the US dollar upward and undervaluing long-term interest rates worldwide.
“I think it is important to get started and to start normalizing policy,” St. Louis Fed President James Bullard said in an interview with The Wall Street Journal. “Even once we start to normalize, interest rates would be extraordinarily low.”
Wall Street opened higher on Tuesday ahead of Barack Obama’s State of the Union address. The Nasdaq gained close to 0.6%, the S&P added 0.45% while the Dow increased 0.4%.
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