The economic mood in America continues to worsen as consumer confidence slid 7.2 points this month to a reading of 92.9, according to the Conference Board’s latest survey. This marks its lowest level since January 2021, extending a decline that began in December after the US presidential election. The March decline mirrors February’s results, highlighting growing pessimism among US consumers. Americans anticipate higher inflation and a potential recession, as indicated by the survey. Expectations for income, business, and labor market conditions fell sharply this month, declining 9.6 points to 65.2, the lowest level in 12 years. The ongoing trade disputes initiated by the Trump administration have created uncertainty among consumers, businesses, and investors, complicating planning and raising fears of stagflation. Despite this, Stephen Miran, chair of Trump’s Council of Economic Advisers, remains unconcerned, attributing the drop in confidence partly to political views influencing economic perceptions. Sarah House, senior economist at Wells Fargo, notes that soft data like consumer surveys could manifest in hard data but this remains to be seen. The Federal Reserve is adopting a wait-and-see approach with interest rates, closely monitoring incoming data and the effects of new policies. Current economic data suggests neither an urgent need for rate cuts nor hikes. — news from CNN
