Overview

• The University of Michigan's consumer sentiment index dropped to 64.7 in February, its lowest level since November 2023, driven by inflation fears and new tariff concerns.
• Households' one-year inflation expectations surged to 4.3%, well above the Federal Reserve's 2% target, marking a sharp increase from January's 3.3%.
• Major U.S. stock indexes, including the Dow and S&P 500, experienced their worst losses of the year on Friday, reflecting investor concerns over economic uncertainty and softening consumer demand.
• In contrast to consumer sentiment, a Conference Board survey found that CEO confidence has risen, fueled by expectations of deregulation and corporate tax cuts under the Trump administration.
• The introduction of new tariffs on imports, including lumber, steel, and aluminum, has heightened economic uncertainty, with economists warning of potential inflationary pressures.