U.S. consumer confidence suffered its steepest monthly decline since August 2021 this February, reflecting growing unease about Trump administration policies reshaping the economy. The Conference Board’s latest report reveals a nine-month peak in recession expectations, with Americans increasingly worried about job market instability, rising interest rates, and stock market volatility.
President Trump’s aggressive economic measures – including tariff hikes targeting China, Mexico, and Canada – have amplified financial concerns. While temporary pauses were negotiated with North American allies, 70% of Americans anticipate price increases from these trade policies according to Ipsos data. This aligns with January’s 3% inflation rate, exceeding the Federal Reserve’s target as egg prices surged 53% amid supply chain disruptions.
Consumers facing tariff impacts, reduced spending, and immigration crackdowns are adopting cautious financial behaviors,warned Comerica Bank economist Bill Adams.
Key economic stressors include:
- 25% tariffs on key trading partners
- Federal diversity program cuts
- 143,000 January jobs added vs. 265,000 in December
The political divide remains stark: Democratic-leaning respondents reported worsening outlooks while Republican sentiment improved. Despite these tensions, some positive indicators emerged – home purchase intentions rose slightly, and current business condition assessments showed modest gains.
With inflation lingering from late Biden-era policies and new Trump directives reshaping trade relationships, economists monitor whether consumer spending restraint could trigger broader economic slowdowns. As tariff deadlines approach and price pressures persist, February’s confidence plunge signals turbulent months ahead for U.S. households.
