US Consumer Confidence Plummets Amid Trump Policy Concerns; Fed Expected to Cut Rates, Economic Fragility Unveiled

ECONOMIC DATA

Trump policy concerns send US consumer confidence plummeting to eight-month low U.S. consumer confidence deteriorated at its sharpest pace in 3-1/2 years in February while 12-month inflation expectations surged, offering further signs that Americans were growing anxious about the potential negative economic impact of the policies of President Donald Trump's administration. 

The Conference Board's consumer confidence index dropped 7 points, the biggest decline since August 2021, to 98.3 this month. Economists polled by Reuters had forecast the index falling to only 102.5. The third straight monthly decrease pushed the index to the lowest level since June 2024. It is now at the bottom of the range that has prevailed since 2022.

 

INTEREST RATE PATH 

Fed seen resuming rate cuts in June as consumer confidence takes a dive The Federal Reserve is likely to resume cutting interest rates in June and could reduce short-term borrowing costs again in September, traders bet as they took on board the implications of a widely watched survey that showed consumer confidence 

 

FRAGILE ECONOMY 

US Treasury's Bessent vows to re-privatize an economy that is 'brittle underneath' U.S. Treasury Secretary Scott Bessent argued that the U.S. economy is more fragile under the surface than economic metrics suggest and vowed to "re-privatize" growth by cutting government spending and regulation. 

 

EXCLUSIVE

 Head of Fed-watchdog task force in Congress plans broad US central bank review The head of a new congressional panel gearing up to strengthen Capitol Hill's oversight of the Federal Reserve plans a broad review of how the U.S. central bank makes its interest rate decisions, including whether controlling inflation should be prioritized over safeguarding employment. 

 

EXCLUSIVE 

KKR, Fountainvest and PAG among those eyeing Starbucks China stake, sources say KKR & Co, Fountainvest Partners and PAG are among buyout firms interested in acquiring a stake in Starbucks' China business, four sources said, as the U.S. coffee chain looks to revive flagging sales in its second-largest market. 

 

DIVESTURE 

Thermo Fisher buys Solventum's purification and filtration business for $4.1 billion Contract drug manufacturer Thermo Fisher Scientific said it will buy Solventum's purification and filtration business for about $4.1 billion. 

 

EXCLUSIVE 

US payments firm Cantaloupe exploring options including sale, sources say Cantaloupe is exploring strategic options, including a potential sale or a go-private transaction, four people familiar with the matter said, the latest specialized U.S. payments processor to consider such a move.