Consumer Sentiment Drops Amid Trade and Inflation Concerns

U.S. consumer sentiment has sharply declined in March according to the University of Michigan's survey, reaching its lowest level since November 2022. This drop, registering a 10.5% decrease from February, is attributed to uncertainty and fears surrounding President Trump's trade policies and the resulting economic volatility. The imposition of tariffs on key trading partners has led to increased consumer anxiety about inflation, which is expected to rise significantly in the coming year, as reflected in the one-year inflation outlook jumping to 4.9%. These developments have also contributed to a downturn in the stock market, with the S&P 500 nearing correction territory. Despite these challenges, the Trump administration remains focused on long-term economic gains, even as the potential for a recession looms. The sentiment decline spans across all demographics, indicating widespread economic concern.