Consumer Confidence Index Shows August Dip As Job Opening Report Shows Decline In Positions

Key takeaways

• Consumer confidence posted an unexpected drop due to food and energy prices
• The latest jobs data also revealed job postings and resignation levels are at their lowest in two years
• The markets made some big daily gains as the news further encouraged investors to believe the worst of monetary tightening is over

Changing the course of red-hot inflation is a slow, strenuous process. That’s why 18 months after the Fed began its monetary tightening policy, we’re finally starting to see some lasting impact on jobs and consumer spending, both of which have remained remarkably stable until now.

With these two metrics at their lowest levels in two years, it’s imperative for the Fed to try and steer towards the fabled soft landing without throwing the U.S. economy into a recession. We’ve got the measure on whether that seems likely or if Powell is chasing a pipe dream.