In a survey released on Tuesday by The Conference Board, it was found that U.S. consumers are more optimistic about the state of the economy than they have been in over two years.

The nonprofit business research group’s consumer confidence index increased for the third consecutive month in January, rising from 108 in December to 114.8.

This boost in consumer confidence is likely to be a positive signal for President Biden’s reelection campaign, with the economy expected to play a central role after a tumultuous few years.

The current confidence reading is the highest since December 2021 when inflation reached 7 percent during the economic recovery from the pandemic, The Hill reported.

A few months later, in March 2022, the Federal Reserve initiated the first in a series of interest rate hikes, raising rates from near zero to a range of 5.25 percent to 5.5 percent in July 2023.

The impact of higher interest rates has contributed to lowering inflation from its peak of 9 percent in June 2022 to 3.4 percent, as reported in last month’s consumer price index.

This reduction in inflation has occurred without triggering a recession, raising hopes for a rare “soft landing.”

However, the elevated borrowing costs have put pressure on consumers and eroded their savings from the pandemic era, reflecting a sense of pessimism in recent surveys conducted by The Conference Board.

Written by B.C. Begley