U.S. Consumer Confidence Hits Six-Month Low Amid Inflation and Job Worries

Recent surveys reveal significant declines in consumer sentiment, driven by heightened concerns over inflation and potential unemployment increases.

The University of Michigan's consumer sentiment index dropped to 67.4 in May from 77.2 in April, marking a substantial decline.
Inflation expectations have risen, with the one-year outlook increasing to 3.5% in May, the highest since last November.
Despite a strong stock market and lower gasoline prices, consumer confidence has not rebounded, suggesting deeper economic anxieties.
Federal Reserve officials maintain high interest rates to combat inflation, impacting consumer outlook and spending habits.
Economists express concerns about potential stagflation, emphasizing the delicate balance the Federal Reserve must strike between growth and price stability.