Consumer feelings are getting into like “scared” than ‘sharply higher price’ | News Donald Trump
The weakness of the feeling reflects the exacerbation of expectations for the future in multiple aspects of the economy, including personal finances, employment, inflation.
Consumer feelings in the United States have reduced to almost two and a half years low, and inflation expectations have increased in the midst of the care that Tariff President Donald Trump, who lit a trade war, will increase the prices and underestimate the economy.
The decay of the feelings in March and the expectations of the inflation that reported the University of Michigan on Friday throughout the consumer research throughout the political affiliation with the parties, and consumers said “frequent girations in economic policies make it difficult for consumers to plan the future.”
These mirrors similar worries in some business research. The uncertainty created by Trump’s tariff, as well as escalation in trade tension, risks economic expansion. The fears of higher prices, which have encouraged the long -term expectations of consumers at the level of the last 1993, create a challenge for officials of federal reserves as they consider the following steps for monetary policy.
“The jury has returned, and the verdict is in. Politics Trump 2.0 damage to the economy and future prosperity of America,” said Christopher Rupkey, the main economist in FWDBonds. “The consumer is scared and sees sharply higher prices despite the persuasions of Washington that trade tariffs are good for economics.”
The University of Michigan said his consumer feelings index fell to 57.9, which is the lowest level since November 2022, from a final reading of 64.7 in February. Economists interviewed by Reuters News Agency forecast the index of a drop to 63.1.
The index deleted all gains published after Trump’s victory in November.
The weakness in the feeling of this month reflected the exacerbation of expectations for the future in several aspects of the economy, including personal finances, employment, inflation, business conditions and stock markets.
Republicans recorded a 10 percent drop in the index of their expectations, while independent recorded a 12 percent decrease. Expectations between democrats fell 24 percent.
“Consumers from all three political affiliations agree that the prospects have weakened from February,” said research by consumer director Joanne HSU. “Many consumers have cited a high level of uncertainty about politics and other economic factors.”
Tariff
Trump separated the raft of tariffs to a wide range of goods from key trade partners such as Canada, China and the European Union, who responded to their own duties. Some tariffs were imposed and then suspended for a month.
Trump threatened to hit Europe with 200 percent of wine, cognac and other alcohol imports on Thursday. Tariph whips and escalation in the trade war have scattered financial markets, which has launched sales sales, which also contributed to the depressed feelings of this month.
Consumers have jumped to 4.9 percent of 12-monthly inflation expectations, which is mostly November 2022, with 4.3 percent of predictions in February. Over the next five years, consumers recorded inflation to 3.9 percent. This was the highest reading since February 1993, and in comparison with 3.5 percent in February.
Wall Street shares traded on Friday more after being beaten in previous sessions. The dollar changed a little to the currency basket. The American Treasury gives a rose.
Fed officials will be expected to leave the US Central Bank reference rate of 4.25 percent to 4.5 percent next week, reducing it by 100 base points from September, as they continue to evaluate the economic impact of Trump’s administration policies.
Financial markets expect that the FED will continue to reduce the borrowing costs in June after stopping in January in January in the midst of darkened economic appearances. The policy rate increased by 5.25 percentage points in 2022 and 2023 to the tame inflation.
Trump also embarked on an unprecedented campaign to drastically reduce the government over a billionaire of technology billionaire Elon Musk, an efficiency of the Government, or Doge, who reduced funding and fired thousands of federal workers.
Trade unions representing some of the civil servants challenged release, resulting in returning.
The American Reuters/IPSOS survey conducted on Tuesday and Wednesday showed that 57 percent of poll participants believe that Trump’s moves to shake up the economy are too messy, and 53 percent think that the tariff war will do more damage than benefits.
