Americans nationwide continue to lose faith in the Federal Reserve Board to keep inflation under control, with the number who say they are paying more for groceries now at an all-time high.
The latest Rasmussen Reports national telephone survey of American Adults shows that just 31% are at least somewhat confident that the Fed will be able to keep inflation under control and interest rates down, and that includes only eight percent (8%) who are Very Confident. Sixty-five percent (65%) are not confident the Fed can keep inflation and interest rates under control, with 25% who are Not At All Confident.
Prior to the latest survey, overall confidence in the Fed to handle inflation and interest rates ranged from a low of 32% to a high of 41%. The number who hold no confidence at all is now at its highest level in nearly two years.
This lack of confidence stems partly from the fact that 93% of adults report paying more for groceries now than they did a year ago, the highest finding to date. Only four percent (4%) say they’re not paying more for groceries now compared to a year ago. Prior to the latest results, the number that said they are paying more for groceries ranged from low of 75% in April 2010 to a high of 91% in May of this year.
Seventy-nine percent (79%) of adults now expect the amount of money they spend on groceries to be higher a year from now, up five points from last month and just a point below the highest level measured. This number stayed in the low to mid-60s throughout 2009 and 2010.
Only three percent (3%) think they’ll be spending less on groceries in a year’s time, while 15% expect to pay about the same amount.
For the third straight month, 79% of adults are at least somewhat concerned about inflation, including 49% who are Very Concerned. Only 19% aren’t as concerned about inflation, with just four percent (4%) who aren’t concerned at all.
Democrats hold more confidence in the Fed to keep inflation under control and interest rates down than do Republicans and adults not affiliated with either major party.
Investors are slightly more confident than non-investors that the Fed can handle both of these matters.
But strong majorities of adults from all demographic groups agree they are paying more for groceries now than they were a year ago.
These findings add to a string of survey findings showing very negative perceptions of the economy among Americans.