Families Are “Terrified About What Lies Ahead” Under Trump’s Economy, Says Groundwork’s Jacquez

54 days in, inflation expectations are already at their highest since November 2022

Consumer sentiment plunged as inflation expectations rose to their highest levels since November 2022, according to new data from the University of Michigan Consumer Sentiment Survey. Year-ahead inflation expectations jumped to 4.9%. Consumer sentiment is down 22% since December, with three months of decline. Even Republicans posted a 10% decline in March’s expectations index, signifying the instability and uncertainty consumers face.

Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez reacted to the latest proof point that Donald Trump has us on a collision course toward a recession:

“Today’s shocking consumer sentiment numbers are a referendum on the president’s mishandling of the economy, just 54 days into office. Working families are longing for stability as their grocery bills and rent payments continue to climb, but Trump’s chaotic approach to the economy has them feeling more uncertain than ever.

“Consumers are rightly terrified about what lies ahead. The Administration is more focused on gutting Social Security to pay for tax giveaways to billionaires and corporations than they are making life more affordable for working families.”

Email press@groundworkcollaborative.org to speak with a Groundwork expert about President Trump’s handling of the economy.

THIS WEEK IN THE TRUMP SLUMP

• A new poll this week from Groundwork Collaborative and Data for Progress found that grocery price increases are what voters find most frustrating, followed by utilities, health care costs, and housing prices. Many of the Trump Administration’s policies are worsening affordability, just as polls show Americans want to see more actions to lower prices.
• Consumers’ year-ahead expectations about their households’ financial situations deteriorated considerably in February according to the New York Fed. The share of households expecting a worse financial situation one year from now rose to 27.4 percent, its highest level since November 2023.
• The National Federation of Independent Business’s Optimism Index has fallen by 2.1 points in February to 100.7 – the second straight month of decline. The NFIB said its uncertainty index also rose 4 points to 104 – reaching its second highest level recorded. Net percentage of firms expecting better economy fell to 37% and the net percentage of firms expecting better sales fell to 14%.
• President Trump had the worst stock market performance in a president’s first 50 days since 2009 – when President Obama inherited the stock market of the Great Recession. President Trump inherited a far different economic reality than Obama did 16 years ago.
• Public approval of Trump’s handling of the economy is at 39%, with just 32% of respondents approving of his approach to the cost of living according to  Reuters/IPSOS polling. A CNN/SSRS poll found that 56% of Americans disapprove of the president’s stewardship of the economy.
• Business leaders are increasingly worried about President Trump’s handling of the economy. Larry Fink, the CEO of BlackRock, the world’s largest asset manager, told CNN, “The collective impact in the short run is that people are pausing, they’re pulling back. Talking to CEOs throughout the economy, I hear that the economy is weakening as we speak.” Jamie Dimon, CEO of JPMorgan Chase, said of Trump’s tariff chaos, “Uncertainty is not a good thing.”
• President Trump has scrambled to contain the economic worries, even conceding that a recession was a possibility. He sent his surrogates Commerce Sec. Howard Lutnick, Treasury Sec. Scott Bessent, NEC Director Kevin Hassett, and DOGE head Elon Musk out on TV last week to defend his handling of the economy – but all of them were caught lying about the economy and their plans to address it.