RJ and Makay

U.S. consumer sentiment rose in April as worries about the impact of higher oil prices on economic growth eased slightly, according to Reuters.

The consumer sentiment index calculated by Reuters and the University of Michigan has spiked 3% so far this month to 69.6 from 67.5 in March. Although the latest reading beat the consensus forecast of 68.5 among economists polled by Reuters, it's still below February's result (but not March's), Reuters reports.

It may not be necessary to complete the second round of quantitative easing (QE2), the Federal Reserve's $600 billion bond-buying program aimed at stimulating the U.S. economy, suggests St. Louis Federal Reserve Bank President James Bullard. “The economy is looking pretty good,” he explains. "It's still reasonable to review QE2 at coming meetings, especially this April, and see if we want to finish the program or stop a little bit short."

However, Fed Chairman Ben Bernanke has given no indication the central bank will deviate from its plan to buy bonds through June to spur economic growth and reduce unemployment. In two days of congressional testimony earlier this month, Bernanke said that while growth will accelerate in 2011, he still wants to see a sustained period of stronger job creation before curtailing economic stimulus.

After a severe recession, an increase in consumer spending would normally be cause for celebration because it suggests the economy's improving. But the 0.7% spike just reported for February by the Commerce Department isn't impressing many people, even though it's the largest consumer spending gain in four months.

Why? People spent more in February mainly because gas got a lot more expensive. In fact, half of February's 0.4% inflation uptick was due to energy costs, and economists worry that if those costs keep going up, they'll cut into household budgets enough that consumers won't be able to spend on items associated with economic growth.