Eurodollar University Consumer Confidence Just COLLAPSED, Again...
Apr 14, 2025
Joining the conversation, Steve Van Metre, an economic commentator, dives into alarming trends as consumer confidence hits a historic low, signaling fears reminiscent of the 2009 recession. He unpacks the worrying deflationary signals seen in consumer and producer price indexes despite current tariffs. The discussion reveals how these factors interplay with job security fears and spending habits, highlighting the fragility of the economy. Van Metre also critiques traditional inflation solutions, suggesting a volatile economic landscape ahead.
AI Snips
Chapters
Transcript
Episode notes
Consumer Confidence Collapse Signals Deflation
- Consumer confidence has collapsed to near record lows as fears of job loss rise sharply.
- Falling consumer and producer prices signal deflation, reflecting economic weakness and inability to pass cost increases.
Demand Pullforward Backfires
- Consumers pulled demand forward during the pandemic and tariffs but now face a lack of work and excess inventories.
- Fear of job loss drives consumers to stop spending, pay down debt, and save more, increasing recession risk.
Confidence Reflects Labor Market Outlook
- Consumer confidence mainly reflects labor market outlook, such as job security and wage expectations.
- Declining confidence precedes spending cutbacks, as consumers hear negative signals from employers and peers.