Consumer confidence in the US has dropped sharply, hitting its lowest level since January 2021. Americans fear rising inflation and a possible recession, raising concerns about stagflation.
President Trump’s unpredictable economic policies, including trade tariffs and deregulation, have contributed to uncertainty. Businesses and investors struggle to plan amid shifting policies, fueling economic worries.
The Federal Reserve is cautiously monitoring these developments, keeping interest rates steady while assessing the economy’s response.
Some economists argue that consumer sentiment data isn’t always a strong indicator, but early signs of economic slowdown are emerging.
Despite economic concerns, the labor market remains strong, with steady job growth and low unemployment. However, inflation expectations are rising, complicating the Fed’s decisions.
While no immediate rate cuts are expected, policymakers remain alert to economic risks. For now, the economy remains stable, but uncertainty persists regarding future growth and inflation trends.