US Consumer Confidence Plummets to the Lowest Level in Over 11 Years

In a sign of growing concern over the sluggish labor market and rising costs, U.S. consumer confidence has fallen to its lowest point in more than 11 years, as reported by the Conference Board on January 27. With fewer consumers optimistic about job availability and the potential for spending slowdowns, this decline, particularly pronounced among Independents and low-income households, may increase pressure on President Trump to tackle the perceived affordability crisis linked to his economic policies. While the Federal Reserve's upcoming meeting is unlikely to be swayed by this drop in confidence, the sentiment reflects troubling perceptions of the job market, which could signal a future rise in unemployment rates. As high material costs and regulatory constraints continue to impact housing supply, home prices are projected to rise despite lower mortgage rates. Investors, however, remain unfazed, with Wall Street showing gains amid this backdrop of consumer anxiety.