US Consumer Confidence Falls to Lowest Level Since November 2022

US consumer confidence toward the economy has fallen to its lowest level since November 2022, a month in which the annual inflation rate hit 7.1%. Federal Reserve Chairman Jerome Powell acknowledged that the prospects for a soft landing—reducing inflation without tipping the economy into recession—had diminished, according to a University of Michigan survey.

Last December, with inflation falling to 2.9% and GDP growing at a 2.3% annualized rate in the fourth quarter, the Fed appeared to be on track to achieve this optimistic scenario. Quoted from CNBC,

But the tariff disruptions imposed by President Donald Trump in 2025 threaten this outlook, as consumers now expect inflation to rise to 4.9% within a year, according to the same survey.

The University of Michigan’s Consumer Confidence Index registered a reading of 57.9 in mid-March, down 10.5% from February and below the 63.2 forecast in the Dow Jones survey. One-year inflation expectations rose to 4.9%, the highest level since November 2022. Joanne Hsu, director of the survey, said uncertainty about economic policies was a major factor behind the decline.