By Hera! Tariffs and Trepidation: Are U.S. Consumers Losing Faith in the Economy?

Ares Must Be Plotting Something...

Greetings mortals! Wonder Woman here reporting from the front lines of... well your economy. It seems a shadow of doubt has fallen upon the land darker than even the pits of Tartarus! A recent survey from the University of Michigan has revealed that consumer sentiment is plummeting faster than I can leap a tall building. Apparently you humans are worried that these pesky things called 'tariffs' will lead to... *shudders*... higher inflation. Honestly you'd think after all the world ending threats I've faced *this* would be the thing that truly terrifies me.

Sentiment Sinks Lower Than Hades' Lair

The index of consumer sentiment has sunk to a dismal 50.8 a level not seen since the dark days of June 2022. It's enough to make even Etta Candy lose her appetite! What's worse the outlook for price changes is looking gloomier than Themyscira during a thunderstorm. Year ahead inflation expectations have risen faster than Cheetah's mood swings and long term expectations are also creeping upwards. If this keeps up you'll be paying more for a loaf of bread than I paid for my invisible jet back in the day! (Okay maybe not but you get the point.)

A Glimmer of Hope? Or Just Another Trick by Circe?

Now before you all start stocking up on canned goods and digging bomb shelters (again!) there's a tiny spark of hope. Apparently the U.S. and China have agreed to a 90 day pause on most tariffs. Think of it as a truce in a never ending war... except instead of battling gods and monsters you're battling... economics. Hopefully this pause will give consumers a bit of breathing room though honestly I've seen truces last longer between me and Ares!

Tariffs: The Invisible Chains Binding Your Wallets

According to Joanne Hsu director of the Surveys of Consumers tariffs are a major factor weighing on people's minds. Almost three quarters of consumers spontaneously mentioned tariffs up from almost 60% in April. It seems uncertainty over trade policy is dominating your thoughts more than Steve Trevor dominates mine... err moving on! Even with the pause the effective tariff rate remains higher than before the previous administration. It's like trying to break free from chains forged by Hephaestus himself!

The Fed's Watching Like Hera Watching Zeus

Even Federal Reserve Chair Jerome Powell is keeping a close eye on inflation expectations. He wants to make sure those pesky long term expectations don't rise too high before resuming rate cuts. Think of him as the guardian of the economic flame trying to keep it from burning out of control. But even he needs help because let's face it even a god cannot control the markets all the time.

Wait and See: Will This Pause Save the Day?

Economists are divided on the impact of tariffs with most agreeing they could lead to a short term rise in prices. However the long term effects remain unclear. In the meantime all eyes are on the final consumer sentiment index for May which will be released on May 30th. Will the tariff pause lead to an improvement in sentiment? Only time will tell. But remember mortals even in the darkest of times there is always hope. And if all else fails I can always lasso inflation into submission! Until then stay vigilant stay informed and remember 'Fighting doesn't make you a hero.'