Morning Business Report: Consumer anxiety rises as trade war escalates
Americans are growing increasingly concerned about the economy as inflation, unemployment fears, and stock market uncertainty climb, according to a new survey released by the New York Federal Reserve.
(LILAMAX)- Americans are growing increasingly concerned about the economy as inflation, unemployment fears, and stock market uncertainty climb, according to a new survey released by the New York Federal Reserve.
In March, consumer worries deepened amid intensifying global trade tensions. The survey found that the perceived probability of the unemployment rate rising within the next year surged to 44% — a jump of 4.6 percentage points — marking the highest level seen since the early days of the COVID-19 pandemic in April 2020. Respondents also expressed growing pessimism about the stock market outlook.
This comes as the U.S. government announced a new probe into semiconductor and electronics imports on Monday, potentially setting the stage for additional tariffs. In response, a coalition of small businesses has filed a lawsuit against President Donald Trump in the U.S. Court of International Trade, alleging that he has overstepped his authority by unilaterally imposing tariffs—traditionally a congressional power. The Liberty Justice Center, representing the businesses, noted that tariffs were even applied to countries without trade deficits with the U.S. The White House has declined to comment.
Despite the tensions, markets saw a temporary boost. Tech stocks rose on reports that certain companies may be granted tariff exemptions. Auto stocks also gained after President Trump expressed support for the sector, though he provided no specifics.
Meanwhile, the U.S. dollar fell to a six-month low, with analysts warning of further declines. Bloomberg reports that the dollar and U.S. Treasury bonds—typically seen as safe havens—are losing favor with global investors amid growing uncertainty. Economists caution that a weaker dollar could prolong inflationary pressures.
As economic jitters rise, attitudes toward money management appear to be shifting. A nationwide survey of 2,000 Americans found that 61% believe being “frugal” is more socially acceptable now than it was a decade ago. Conducted by Talker Research on behalf of banking app Chime, the survey revealed that people increasingly define frugality not as being “cheap,” but as being mindful of expenses, avoiding wasteful spending, and prioritizing saving.
