Consumer confidence grows while interest rates remain the same for now

ORO VALLEY, Ariz. (KGUN) — Confidence in the economy has reached its highest level in two years, according to the latest survey by the Conference Board, an independent non-profit organization that delivers business insights.

Confidence jumped in January to a two-year high of 114.8, according to the survey.

"I think it's getting better," said resident James Staska. "I got a great new job, and it looks like it's going to last even past the current project that I'm working on, so I'm really optimistic about the future."

Slowing inflation levels and a low unemployment rate of 3.7%have given consumers like Staska and recent retiree Tim Schoonhoven the confidence to keep spending.

"I might be a little different than most because I just retired. I retired on December first, so my whole spending is probably more different than it's ever going to be."

With residents in Oro Valley feeling better about the economy's direction, businesses in the area are saying they're feeding off that confidence.

The general manager of Saffron Indian Bistro, Sam Nalli, said, "I think we're going to have a better year this year," when asked about running a restaurant over the past year.

With the positive outlook felt by consumers and businesses, many are now waiting for the anticipated cut to interest rates, which have remained between 5.2-5.5% since last summer.

"We can only do so much. We can never really predict the market," Nalli said. "So interest rates coming down is a plus. People going out more, going out to businesses more is a plus."

The Federal Reserve announced Wednesday that it won't be cutting back on interest rates this March during their next meeting.

Federal Reserve Chair Jerome Powell said Wednesday that they need "more good data" before then deciding if and how much they might cut back on those interest rates.