On October 12, 2024, US consumer sentiment unexpectedly fell for the first time in three months, with the preliminary October sentiment index declining to 68.9 from 70.1 in September, according to the University of Michigan. This decline comes as lingering frustration over the high cost of living offsets more optimistic views regarding the job market.
In a related development, the Federal Reserve has shifted its focus from primarily combating inflation to also considering labor market risks. This change reflects a broader economic landscape where inflation has been managed without significant increases in unemployment or economic slowdown. Discussions with Chicago Fed President Austan Goolsbee highlight the complexities of the current economic cycle, including the importance of inflation expectations and the impact of interest rates on housing costs.