“Feeling Good About the Economy: Americans Seeing Inflation and Optimism Rise

Americans are steadily beginning to feel more confident in the economy, feeling that it is improving and on a better trajectory. A recent survey by the Federal Reserve reveals that 74% of people report feeling that their financial situation is good or very good, the highest number since March 2019, just prior to the pandemic. Moreover, the survey also found that 3 out of 4 participants believed incomes would go up in the coming months, as opposed to going down. Inflation was also considered at the 5 percent mark or lower, with the Consumer Price Index now sitting at a little over 4.5 percent. A more confident attitude is now being felt towards the future of the economy than what was seen when the pandemic first started. The new jobless claims in the United States have decreased since the peak of 20 million people in April last year. Currently, the number sits at approximately 8.5 million Americans, but is still much higher than the peak number prior to the pandemic. With the country seeing a shift in how it handles the pandemic, the economic outlook could markedly improve. Vaccine roll outs have been occurring across the United States, as well as other countries, and travel restrictions are looking to be lifted in many areas that could help the hospitality industry bounce back. The economy was on an overall positive trajectory before the pandemic, and it will continue to build upon that as COVID-19 continues to become increasingly contained. With numbers of joblessness being reduced and the stock market bouncing back to previous record highs, there is a lot of indication that the economic impact of the pandemic is looking to dissipate. The survey further revealed that 81% of those asked would purchase a large item, such as a car, in the next 12 months. This number further confirms that people are feeling better about their financial situations. Indeed, it appears that Americans are starting to feel better about the economy and inflation, and have an optimistic outlook towards the future. This positive energy coupled with the rollout of a vaccine and the efforts of the Federal Reserve should help to continue the steady improvement and recovery of the economy.