Consumer Sentiment Falls to 29-Month Low

U.S. consumer sentiment has plummeted to a 29-month low as inflation expectations rise sharply, driven by uncertainty surrounding President Trump's economic policies, including tariffs and government spending cuts. The University of Michigan's consumer sentiment index fell 11% in March, marking the third consecutive month of decline across all demographics. Consumers are particularly concerned about rising inflation, with short-term expectations increasing to 4.9% and long-term projections to 3.9%, the highest since 1993. The decline in confidence is attributed to erratic economic policies and fears of a trade war, which have created a challenging environment for future financial planning. Despite the drop in sentiment, current economic indicators remain relatively strong, though concerns about potential recession persist. The Trump administration downplays these concerns, labeling the disruptions as a necessary 'detox' period leading to future economic growth.