44-Year Low Levels? Inflation Fears Surge | S2 E044 | 05-16-25
📉 Consumer Confidence Just Collapsed—And Inflation Expectations Are Skyrocketing
In this episode of Markets with Megan, Verdence CIO Megan Horneman breaks down the University of Michigan’s preliminary consumer sentiment data for May, and the message is loud and clear: consumers are worried. REALLY worried.
🧠 Key highlights from the episode:
• Consumer expectations index plunges to the lowest level since 1980
• Current conditions sentiment hits lowest since June 2022
• Inflation expectations for 1 year spike to 7.3%, the highest since 1981
• Long-term inflation expectations rise to 4.6%—highest since 1991
• What this means for the Fed’s next move on interest rates
⚠️ This data signals a dangerous dynamic: a fearful consumer expecting inflation to worsen could unintentionally drive prices higher, forcing the Fed into a policy corner.
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