Kraman Countdown panelists Kenny Polkari and Jose Torres unleashed the stress of consumers.
U.S. consumer sentiment fell more than expected for more than a year in February, while expectations about inflation rose amid uncertainty surrounding President Donald Trump's tariff plans.
The University of Michigan Consumer Survey released its Consumer Sentiment Index on Friday, which fell from 71.7 in January to 64.7 in February. This was the lowest read since November 2023, weaker than the 67.8 preliminary reading, which was the expected consensus among economists voted by Reuters.
A survey by consumer research director Joan Hussou said feelings have declined for both Democrats and independents, but not for Republicans.
Household inflation expectations rose to 4.3% next year. This is the highest level since November 2023, and is a sharp increase from 3.3% last month.
Federal officials hamper the risk of rising inflation amid uncertainty over Trump's policy, tariffs
Consumer trust fell sharply in February than expected. (Victor J. Blue/Bloomberg via Getty Images)
HSU added that the current reading of inflation expectations is “well above the 2.3-3.0% range seen two years before the pandemic.”
He said households expect inflation to be 3.5% over the next five years. This is the highest since 1995, up from 3.2% in January. HSU noted that it was the biggest increase in metrics month since May 2021.
“In terms of both short-term and long-term inflation expectations, this month's growth has been widely popular and across revenue and age groups. This month, inflation expectations have risen for independents and Democrats as well. Republicans. It fell slightly because of it.”
Fed fractions indicate tariffs that have been fought with concerns about higher inflation
Household inflation expectations have jumped to the highest level since November 2023. (Gabby Jones via Getty Images/Gabby Jones/Bloomberg)
The report comes as inflation has stubbornly surpassed the Federal Reserve's 2% target in recent months. The consumer price index, a popular inflation meter, was 3% a year in January, higher than expected.
President Trump's tariff plans came into effect during his first month of office. He announced a 10% tariff on imports from China, in addition to existing taxes. Trump also delayed 25% tariffs in Canada and Mexico until at least early March after the two countries announced border security measures.
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He also announces 25% tariffs on imported steel and aluminum, and calls for a mutual tariff plan that will match US tariffs on countries imposed by other countries on US exports. The administration in April.
Reuters contributed to this report.
