US Consumers Cut Spending as Sentiment Sinks to Record-Low 44.2
Updated
Updated · Bloomberg · May 22
US Consumers Cut Spending as Sentiment Sinks to Record-Low 44.2
8 articles · Updated · Bloomberg · May 22
US households are pulling back on purchases as high gasoline costs and persistent inflation darken the summer outlook for consumer demand.
Gas prices tied to the Iran war are squeezing budgets directly, while the lift from tax refunds is fading after supporting some spending earlier this year.
Walmart and Lowe’s warned those fuel costs may soon feed into shelf prices, raising the risk that weaker demand and higher prices hit retailers at the same time.
University of Michigan data showed consumer sentiment fell for a third straight month to a record low 44.2 in May, with inflation and war-driven oil disruptions driving the slide.
Will an interest rate hike actually lower record gas prices, or will it just hurt the economy more?
Can the Fed's new plan to shrink its balance sheet tame inflation without triggering a deep recession?
With the Iran war crippling global trade, what is the real plan to reopen the world's most vital oil chokepoint?
U.S. Faces Economic Crossroads: Rising Bond Yields, Persistent Inflation, and Fiscal Crisis Fears in 2026
Overview
The U.S. economy is facing a turbulent period as the 30-year Treasury yield has surged to its highest level since 2007, driven by persistent inflation and a deepening bond rout. This rise in yields is causing borrowing costs to increase across the economy, making it harder for consumers to afford loans and dampening the housing market. Inflation remains stubborn, with both consumer and producer prices climbing, leading investors to demand higher returns on bonds. These broad-based price increases and investor concerns are fueling further selloffs in the bond market, creating a challenging environment for growth and stability.