Spike in Inflation Expectations Causes Sentiment to Dip for 2nd Straight Month
From Investing.com: 2025-02-10 02:47:00
Consumer sentiment declined in February for the second consecutive month, with the U of Michigan sentiment index dropping to 67.8, the lowest since July. This decrease is primarily due to a spike in inflation expectations, reaching 4.3% over the next 12 months, a 15-month high. The uncertainty surrounding tariffs is believed to be a factor in this shift. Despite the rise in inflation expectations, strong job data and a pullback in interest rates suggest that the Fed may hold off on any immediate actions. Financial conditions tightening may impact liquidity and put pressure on stocks.
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