Wall Street Journal: “President Trump’s stop-and-start trade wars and other rapid-fire policy changes are making Americans feel gloomy about the economy. Their 401(k)s are down, and their expectations for inflation are up. Now they are paring back spending on extras such as vacations and home-improvement projects.”
“The University of Michigan’s closely watched index of consumer sentiment nosedived 11% to 57.9 in mid-March from 64.7 last month. Sentiment among Democrats was the lowest ever recorded, including the depths of the 2008-09 financial crisis. Even Republicans are feeling worse, although many think that any short-term economic pain caused by Trump’s moves will be worth it. On a recent Sunday, Trump declined to rule out a recession.”
“Bleak sentiment about the economy can become a self-fulfilling prophecy. Nervous consumers tend to cut back, which weighs on spending and economic growth. While economists have been marking down their estimates for the economy, they still expect it to grow.”
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