March 3, 2025
ABC News 7 recently published an article featuring Mark Williams, potential trouble Master Lecturer of Finance, discussing how Americans are increasingly worried about rising prices, signaling a growing challenge for the Federal Reserve to control higher inflation.
Two surveys conducted by the University of Michigan and the Conference Board revealed a notable decline in consumer confidence, fueled by growing concerns over inflation amid ongoing uncertainties in trade policy and fluctuating tariffs from the White House. These anxieties come on the heels of inflation, which increased to 3% from 2.4% last summer, coupled with a decline in retail sales and consumer spending.
“From a consumer standpoint, as these prices go up, consumers then are forced to use credit cards more to pay for everyday expenses. That puts pressure on credit card debts as well, so there’s a lot of economic components to this,” Williams adds.
Fed officials have expressed concerns about inflation expectations, which have risen sharply, and are expected to keep interest rates steady during their next meeting, though the outlook remains uncertain due to the ongoing trade and tariff uncertainties.
