Consumer Confidence Plunges Most in Nearly 4 Years as Inflation Fears Escalate on Trump Tariff Threats
Consumer confidence declined sharply in February, notching its biggest monthly decline in nearly four years as uncertainty related to Trump's trade policy also lifted inflation expectations, according to new data released Tuesday morning. The Conference Board's Consumer Confidence Index for February came in at a reading of 98.3, a significant drop from January's revised 105 reading and short of the 102.5 reading expected by economists. Historically, a reading below 80 in the "Expectations Index" signals a recession in the coming year, which was first seen since June 2024.
- The rise in inflation expectations highlights the pressing need for policymakers to address trade uncertainty and its impact on household finances, potentially setting a precedent for more proactive measures to mitigate economic volatility.
- How will the escalating trade tensions, coupled with President Trump's revived tariff threats, shape the administration's agenda and influence the overall trajectory of the US economy?