US Consumer Confidence Collapses to Record Low on Recession Fears

Consumer pessimism has surged to an all-time high, with 41% of US consumers expecting worsening finances over the next 12 months—triple the Q2 2024 level and far exceeding 2008 crisis peaks. This signals deflationary demand destruction ahead, pressuring Fed rate-cut expectations and weighing on USD as markets reassess the inflation trajectory that has anchored policy decisions.