February Sees Sharp Decline in Consumer Confidence, Reaching Lowest Level Since June 2024

In February, US consumer confidence experienced a significant decline of 7 points to 98.3, the largest drop since August 2021, as reported by the Conference Board. Traders predict a 70% likelihood of a quarter-point interest rate cut by the Federal Reserve in June. Senior Economist Stephanie Guichard highlighted that worries regarding inflation and the current administration's policies were prevalent in consumer feedback. Despite the decrease in consumer confidence, the labor market shows resilience, with February's unemployment rate at 4%, suggesting a possible easing of monetary policy.