Trump Trade Policies and Federal Cuts Shake Consumer Confidence
Americans are increasingly anxious for their work and finances while the commercial policies of the Trump administration and the government cuts worry about the economy.
Consumer trust has collapsed This month at its lowest level since January 2021, the Board of Directors reported on Tuesday, extending a decline that has been underway shortly after President Trump was elected last autumn. The short -term perspectives for “income, commercial and labor market conditions” went down to its lowest reading in 12 years, reported the company group, reporting the anguish of consumers regarding a deterioration of economic conditions in the next year.
Economists warned that Mr. Trump’s plans for the large rates on the largest commercial partners in the United States could rekindle inflation. Whiplash from changing commercial policies and the concern of investors for a potential slowdown in the American economy, has fueled an equity market selling At the beginning of this month. Families are preparing for greater inflation during the following year, according to the survey, with the inflation expectations of 12 months that went up to 6.2 percent, from a perspective of 5.8 percent in February. (In the last 12 months, the inflation rate was 2.8 percent, according to the Consumer price index for February.)
Consumers are “frightened” by the commercial wars of the Trump administration, cuts in the federal government by the so-called Department of Efficiency of the Government and the recent Sell-Off of the share market, said Bill Adams, head of Comerica Bank’s economist.
“When people fear for their work, they will reduce discretionary expenditure on vacation and come out and delay large purchases such as new houses, cars or appliances,” said Adams. He added that the length of the recession in the feeling of consumers was difficult to predict.
Stephen Miran, president of the Council of Economic Councilors of the White House, played consumer trust in an interview with the CNBC on Tuesday. “People often let their political opinions influence their opinions on the economy,” he said.
The last survey of the conference council added growing evidence that uncertainty about tariff policies is making consumers less confident of economic perspectives and more worried about inflation. Data from the University of Michigan released This month he showed that the feeling of consumers precipitated by 11 % since February while Americans of all ages, groups of income and political affiliations have become even lower.
Some managers of the company also warn a pullback of consumer spending. Delta Air Lines cut her financial forecasts For the first three months of the year, citing a lower demand for domestic trips, while the CEO of the Burlington clothing dealer warned his investors that the rates “could damage the discretionary expenditure”.
