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Consumer sentiment rises for 1st time this year as inflation remains tame

  • The University of Michigan's consumer sentiment index rose 16% in June 2025 to 60.5, marking the first increase in six months amid easing trade tensions.
  • This rise followed months of declines linked to anxiety over President Trump's wide-ranging trade war and steep tariffs on China, the EU, and others.
  • Sentiment improved across supporters of both major parties and independents, while consumers' inflation expectations dropped significantly this month, reflecting reduced worries about future inflation.
  • Joanne Hsu, the survey director, stated that consumers seem to have adjusted after the initial impact of the steep tariffs introduced in April and the uncertain policy environment that followed in subsequent weeks.
  • Despite the improvement, consumer sentiment remains about 20% below December 2024 levels, suggesting continued caution as the Federal Reserve plans to keep interest rates steady near 4.3%.
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NBC Chicago broke the news in Chicago, United States on Friday, June 13, 2025.
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