From Yahoo Finance: 2025-03-25 11:31:00

Consumer expectations for employment, income, and business conditions hit a 12-year low in March due to tariff anxiety, per the Conference Board. The Expectations Index dropped to 65.2, well below the recession threshold. Consumers grew more pessimistic about future inflation and prices for household staples like eggs.

University of Michigan survey shows long-term inflation expectations soaring, fastest pace since 1993, due to tariff and policy worries. Federal Reserve Chair Powell downplays short-term inflation concerns, emphasizing stable long-term expectations. Policymakers aim to return inflation to 2% target amid rising short-term expectations.

Fed officials predict core inflation to end the year at 2.8%, higher than December estimate. Fed Governor Kugler notes slower progress in curbing inflation since last summer, with evidence of accelerating prices for goods. Recent inflation increases tied to trade policy, leading to policy support for holding federal funds rate.

Both Kugler and Conference Board highlight high economic uncertainty. Write-in survey responses show consumer concern about inflation and impact of trade policies. Policy continues to be restrictive, with worries about economic and policy uncertainty on the rise.

Read more: Consumer expectations for future plunge to 12-year low on tariff anxiety