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US stocks tumble as deepening consumer gloom raises stagflation fears

28 March 2025
in Business
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US stocks tumble as deepening consumer gloom raises stagflation fears
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Wall Street stocks fell on Friday amid concerns of stagflation as data revealed consumer strain due to Trump’s tariffs, with the University of Michigan reporting a sharp decline in consumer sentiment and a rise in long-term inflation expectations. Consumer spending rose less than expected, prompting Goldman Sachs to lower its GDP forecast for the first quarter, while the Atlanta Fed revised its estimate to show a contraction. The Fed’s PCE price index indicated inflation above expectations, leading to speculation about potential interest rate cuts despite Powell’s reassurance about the economy’s strength.

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Tags: ConsumerDeepeningFearsGloomRaisesstagflationStockstumble
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