📉💼 American wallets are feeling the squeeze! New data shows inflation remains stubbornly high, with February’s Consumer Price Index (CPI) rising 2.8% year-on-year – and core inflation (which skips food and energy costs) spiking even higher to 3.1%. This puts the Federal Reserve’s 2% target firmly out of reach *for now*.
Sticker Shock: With prices climbing, U.S. consumer spending nosedived 0.2% in January – the sharpest drop since 2020. 🛒💸 “People are prioritizing essentials over extras,” says analyst Xue Tianhang, linking the strain to tariffs that drive up import costs.
😟 Consumer confidence also hit a speed bump, plummeting 7 points in February. Nearly *half* of those surveyed fear job market instability, the gloomiest outlook in 10 months. Could stagflation (think high prices + slow growth) be on the horizon? The Atlanta Fed predicts a 1.5% GDP contraction by early 2025.
🎢 What’s driving this economic rollercoaster? Experts point to global trade tensions and policy clashes, with tariffs adding fuel to the inflationary fire. Stay tuned as we track how households and markets adapt!
