US consumer sentiment tumbles as long-term inflation expectations hit 32-year high | Worse than expected data comes days ahead of Federal Reserve’s next meeting on interest rates

> US consumer sentiment tumbled in March as long-term inflation expectations hit their highest level in 32 years, underscoring worries that Donald Trump’s policies are hitting the economy.

> The University of Michigan’s consumer sentiment index fell to a preliminary reading of 57.9 in March, the third consecutive monthly drop and the lowest reading since November 2022. Economists expected a smaller fall to 63.1 from 64.7 in February.

> Inflation expectations one year ahead jumped to 4.9 per cent, their highest level since November 2022. Longer-term inflation expectations leapt to 3.9 per cent from 3.5 per cent, bringing them to their highest level since 1993, according to Bloomberg data.

> “The drumbeat of bad news around the stock market and lay-offs among federal workers is clearly not sitting well with consumers,” said Ryan Sweet, chief US economist at Oxford Economics.

> Unemployment fears among consumers polled by the University of Michigan also surged to levels last seen in the 2008 financial crisis.