Wed, 19 Mar 2025

Wed, 19 Mar 2025 Splurge or save? Americans struggle as tariffs hit economy

Families in the US are trying to dodge higher prices from tariffs, as worries rise about the economy.

* Households across the US are cutting back on spending due to uncertainty and concern over job security, economic downturn, and tariffs imposed by President Trump's administration.
* Many individuals have stocked up on non-essential items before prices may rise, but are now hoarding cash and building emergency funds in preparation for potential economic hardship.
* The Federal Reserve is expected to address the situation at its interest rates meeting on Wednesday, but analysts are divided about what action to take as tariffs could both raise prices and slow economic growth.
* Consumer spending, which accounts for two-thirds of the US economy, has slowed down, with retail sales falling last month and job growth slowing.
* Concerns about the job market have surged to their highest level since the Great Recession, while household expectations of long-term inflation have jumped, causing economists to put the odds of a recession at 1 in 3.
* White House officials have acknowledged the potential for "a little disturbance" but promise that short-term pain will lead to long-term gain.
* President Trump's handling of the economy is becoming a point of concern for many Americans, including some Republicans and independents.
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