by John Carney
Breitbart.com
Consumer sentiment took a sharp hit in February as Democrats and independents reacted negatively to Trump’s tariff policies, fearing they will drive prices higher. Republicans remained largely unmoved, highlighting a deepening divide in economic perceptions.
The University of Michigan’s index plummeted nearly 10 percent to 64.7, with long-term inflation expectations climbing to 3.5 percent—the highest since 1995—and short-term expectations jumping to 4.3 percent. The most significant shifts came from Democrats and independents, who increasingly expect tariffs to fuel price hikes. Republican expectations, by contrast, remained steady.
The consumer sentiment index for Democrats has fallen sharply, dropping from 91.4 in October to 51.3 in February. Much of this has been driven by the expectations gauge, which has fallen from 93.1 in October to 36.8 in February.