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Macro

US Consumer Sentiment: Most Expect Higher Rates as Fed Fights Inflation

A University of Michigan consumer sentiment survey found that, for the first time since 2023, a majority of consumers expect interest rates to rise over the next year as the Federal Reserve acts to curb inflation. In September, consumers’ view of the economy over the coming year deteriorated to its lowest level since July 2022.

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AI take

The notable shift is that rate-rise expectations have become the consensus again, which matters for how households frame borrowing and spending decisions. That sentiment deterioration lands as the Fed is still actively fighting inflation, so the survey reinforces a self-reinforcing loop rather than a contrarian signal. For crypto and RWA markets, the read-through is that macro mood, not sector-specific news, is likely to drive risk appetite in the near term. Whether this sentiment persists as the Fed's next moves become clearer is the open question.

Generated by AI for reference only.

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