Consumer Confidence Is in the Toilet

84.5

The Conference Board Consumer Confidence Index® fell by 9.7 points in January to 84.5 (1985=100), from an upwardly revised 94.2 in December. A 5.1-point upward revision to December’s reading of the Index resulted in a slight increase last month, reversing the initially reported decline. However, January’s preliminary results showed confidence resumed declining after a one-month uptick. The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—dropped by 9.9 points to 113.7 in January. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—fell by 9.5 points to 65.1, well below the threshold of 80 that usually signals a recession ahead. The cutoff for preliminary results was January 16, 2026.

Trump’s War on the Federal Reserve Could Be His Most Damaging Economic Policy

“There are many items on President Trump’s agenda that are hurting the U.S. economy: the pointless trade wars, the socialization of the private sector, the mass deportations, and much more. … But in the long run, the most damaging policy of all might be one that’s gotten scant attention, at least from non-finance-nerds: Trump’s quest to crush the Federal Reserve. If Trump succeeds, he may doom the United States to high inflation for years, if not decades, to come.”

Catherine Rampell

It’s the Inflation, Stupid!

A new CBS News poll finds 68% disapprove of President Trump’s handling of inflation and the economy.

The entire poll is brutal:

  • 58% say prices have been going up in last few weeks.
  • 65% say Trump’s policies are making grocery prices go up.
  • 77% of those judging Trump most on economy and inflation say he’s not spending enough time on it.
  • 64% disapprove of his handling of economy.

Big Majority Says Country Going in Wrong Direction

62%

A new PRRI poll finds 62% of Americans believe the U.S. is headed in the wrong direction, fueled by dissatisfaction with President Trump’s impact on the economy, immigration, race relations and the nation’s global standing. Even among Republicans, a significant share — nearly 30% — gave Trump low marks on the economy and how the government is functioning. A new AP-NORC poll found 69% of Americans thought the nation was headed in the wrong direction and 30% in the right direction.