Inflation remains a significant concern for U.S. households, as sentiment continues to decline amid high costs. Economists warn that President Trump's tariff threats could exacerbate inflation, impacting the economy negatively. The anticipated Personal Consumption Expenditures report may show only slight relief for consumers, with fears that a high reading could lead to sustained high borrowing costs. Data suggests an affordability crisis is emerging, particularly with rising prices for basic goods and a slowdown in home sales, prompting concerns about consumer spending and future job stability.
Economists worry that a hot P.C.E. reading may prompt the central bank to maintain high borrowing costs, affecting consumer confidence and spending patterns.
With rising borrowing costs and a potential recession looming, households may start to hold back on major purchases as economic sentiment continues to decline.
Collection
[
|
...
]