Consumer Confidence Crashes as Americans Brace for 4.9% Inflation in 2025

U.S. consumer confidence has hit its lowest point since November 2022, according to the latest University of Michigan survey. This sharp decline comes despite recent economic improvements.
– Inflation dropped from 7.1% (November 2022) to 2.9% (December 2024)
– GDP grew at 2.3% during Q4 2024
– These positive indicators had suggested a possible “soft landing” – where inflation is controlled without causing a recession

New Concerns
President Trump’s aggressive tariff policies have dramatically changed the outlook for 2025. Americans now expect:
– Inflation to jump to 4.9% – nearly double current levels
– Increased recession risk, with Treasury Secretary Scott Bessent offering “no guarantees” against an economic downturn

Market Response
Friday’s stock market rebound appears to reflect relief from the absence of new tariff announcements rather than genuine economic optimism. The mood on both Main Street and Wall Street has turned decidedly negative, with many fearing the previously anticipated smooth economic path will face substantial turbulence ahead.