The economic mood in America continues to worsen as consumer confidence dropped by 7.2 points this month, reaching a reading of 92.9 according to the Conference Board’s latest survey. This marks its lowest point since January 2021 and extends a decline that began in December after the US presidential election. The March decline mirrors February’s, highlighting growing pessimism among US consumers. Americans anticipate higher inflation this year and more predict an economic recession, as shown by the Conference Board survey. This combination of weakening growth and accelerating inflation resembles “stagflation,” a trend also noted by Federal Reserve officials. Expectations for income, business, and labor market conditions in the coming year fell sharply this month, declining 9.6 points to 65.2, the lowest level in 12 years. Meanwhile, the share of respondents expecting a recession in the next 12 months remained steady in March at a nine-month high. The uncertainty caused by President Trump’s trade policies has made planning difficult for consumers, businesses, and investors. Stephen Miran, chair of Trump’s Council of Economic Advisers, stated he isn’t concerned by the drop in consumer confidence, suggesting that soft data like surveys are less indicative of the economy’s state compared to hard data such as jobs reports. Fewer rate cuts may occur this year as the Fed adopts a wait-and-see approach due to the administration’s rapid-fire policy changes. While there are signs of economic weakness, America’s labor market remains strong, with unemployment at a low 4.1% in February. Overall, current economic data suggests the economy doesn’t urgently need rate cuts or hikes. — news from CNN
