Consumer sentiment is at its fourth-lowest mark in more than 70 years.
Transcript:
Consumer sentiment is dropping at a record rate — that’s according to the most recent survey released by the University of Michigan. Sentiment dropped 8% from March to April, giving a final tally of 52.2%. That’s the fourth-lowest mark in more than 70 years.
As for why consumer sentiment has plummeted? The survey said, “Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.”
That uncertainty, of course, refers to tariffs, and the Trump administration’s trade policies are now spilling into other parts of the economy.
The Federal Reserve is grappling with what to do with interest rates. Minneapolis Fed President Neel Kashkari (CASH-CAR-EE) said the central bank is in wait and see mode when it comes to how the tariffs will affect inflation.
However, this month’s sentiment report did not factor in the reaction to the 90-day pause President Trump authored on April 9.
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