The University of Michigan released the preliminary results of its Survey of Consumers last Friday, showing that consumer sentiment, or confidence in the economy's overall health, fell 11% this month, for the third consecutive month.
According to that report, long-run inflation expectations, which span the next five to 10 years, rose to 3.9%, the highest level since 1993. Data firm Renaissance Macro Research also highlighted that the expected change in unemployment was the lowest since the 2008 recession.
“Many consumers cited the high level of uncertainty around policy and other economic factors,” said Joanne Hsu, director of the Survey of Consumers. “Frequent gyrations in economic policies make it very difficult for consumers to plan for the future, regardless of one’s policy preferences.”
The Federal Reserve will hold a meeting on March 19 where this month’s Federal Funds Rate will be published. It’s widely expected that the current 4.25-4.5% rate will remain the same.