Since December, the Fed has gone from pricing in four hikes to two. But that’s not the only thing that has changed.
Consumer views regarding earnings expectations are down. So are their views about the stock market.
The Wall Street Journal discusses changing attitudes in its report How Americans’ Perceptions of the Economy Have Changed in Just Three Months.
Attitudes About Jobs
Despite the falling unemployment rate, 53.7% believe jobs are not plentiful. Another 24.2% think jobs are hard to get. Those who believe jobs are plentiful declined 2.1 percentage points.
Attitudes About the Stock Market
The percentage of people who think the stock market will decline this year has risen by 7.5 percentage points to 38.0%. Another 35.5% (down 0.7 percentage points), think stock will remain the same.
Attitudes About Income
Since December, the number of people expecting their income will drop has risen by a net 2.1 percentage points to 12.5%. 70.3% expect the same.
Given the rise in the price of Obamacare and rents, at least 82.8% expect real incomes will decline.
So do I. Thank you Fed!
Mike “Mish” Shedlock