Harriet Torry
Appearances
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
The survey said that was the highest reading since 1981. Wall Street Journal economics correspondent Harriet Torrey joins me now. Harriet, what is it that's driving consumer sentiment down?
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
Consumers are generally feeling pretty skittish about the economy. And if you look at the various components of the index, they're worried about their jobs, they're worried about their incomes, and they expect higher inflation. So that's really a recipe for stagflation.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
It seems like just a great deal of uncertainty about the direction of the economy is really causing people to feel pretty uncertain. So trade policy, for instance, and prices, you know, how import tariffs will impact prices. Inflation expectations are up by a lot in the short term. So year ahead inflation expectations are 6.5% this month.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
And that is extremely high, especially when you look at the most recent inflation data, which is only a little bit above 2%. So consumers are really expecting a big spike in prices. And over the longer term, five to 10 years, consumers are also expecting higher inflation. Not quite as high, but it was definitely up in April versus in March. And it's causing them anxiety.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
How significant are consumers' expectations to the economy?
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
Well, consumer spending is what drives the US economy. But having said that, consumer sentiment doesn't always translate into consumer spending. So for instance, in 2022, we saw a very, very sharp drop in consumer sentiment. People were extremely worried about the economy and very depressed about inflation. But at the same time, they carried on spending.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
And as we saw in the survey, there is a big split along partisan lines. So in April, we saw sentiment drop among Democrats to its lowest on record, whereas among Republicans, it picked up slightly.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
and expectations for the future they dropped across all parties so everyone is feeling a little worried about the future but republicans are feeling pretty good about the current situation and democrats on the other hand are feeling very negative about both the current situation and the future
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
Harriet Torrey covers the economy for The Wall Street Journal. Thanks so much, Harriet.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
Thank you.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
And in its first quarter earnings report today, Colgate-Palmolive said it's feeling consumers' uncertainty firsthand as they have been buying less toothpaste and soap. The maker of Ajax and SoftSoap lowered its full-year guidance based on the estimated cost of tariffs, which it expects to be around $200 million for the year. The figure doesn't account for tariffs that have been paused.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
Colgate-Palmolive now projects earnings will increase in the low single digits compared with previous guidance in January of mid-single-digit growth. U.S. stocks ended the week mostly higher after a choppy day of trading. Major indexes closed higher for the fourth consecutive day. The Dow traded close to flat, while the Nasdaq composite rose roughly 1.25%.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
The S&P 500 rose around three-quarters of a percentage point. But analysts aren't sounding the all-clear for markets, cautioning that Trump's tariff policies may have done long-lasting damage to the U.S. 's credibility with overseas investors. Given the rising challenges from hefty U.S. tariffs, China aims to implement more growth-supporting measures.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
According to the state-run Xinhua News Agency, the Chinese Communist Party's top policymaking body said the government intends to cut interest rates and the amount of cash banks are required to set aside at the central bank. It says it will also make full and effective use of existing fiscal and monetary policies.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
The Politburo said companies significantly affected by tariffs could receive more funds from the country's unemployment insurance in order to support job retention. China also pledged to maintain a stable and active capital market, which is seen as crucial to anchor confidence in the world's second biggest economy.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
Coming up, why President Trump's attacks on Jerome Powell could put a shadow of suspicion over the next central bank chief. That's after the break.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
Consumer sentiment continues to fall in the U.S., with Americans serving up a bleak outlook on the economy. Plus, how could President Trump's pressure on Jerome Powell make the next Fed chair's job even harder?
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
President Trump has backed off from an implied threat to terminate Federal Reserve Chair Jerome Powell. But economists and former U.S. policymakers say the president's demand that the Fed lower interest rates could undermine investors' confidence in the next Fed chair. Powell's term ends in May 2026. Nick Timuros is The Wall Street Journal's chief economics correspondent, and he joins me now.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
Nick, you spoke with some experts and former policymakers. What's their concern regarding the Federal Reserve?
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
How would that affect investors' thinking?
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
It's not only the Fed chair. How could Trump reshape other aspects of the Fed's personnel or policy?
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
Nick, thanks so much. Thanks for having me. A Milwaukee judge was arrested this morning and has been charged in federal court for allegedly helping a man avoid immigration enforcement last week. The move is a major escalation of the Trump administration's clash with local officials over deportations.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
Milwaukee County Circuit Court Judge Hannah Dugan is charged with obstructing a proceeding before a department or agency and concealing an individual to prevent discovery or arrest. She has been released after appearing in federal court in Milwaukee. The next hearing is set for May 15th. A lawyer for Dugan said she will defend herself vigorously and looks forward to being exonerated.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
And a Milwaukee judge is arrested and charged in federal court for obstructing immigration enforcement. It's Friday, April 25th. I'm Pierre Bien-Aimé for The Wall Street Journal, filling in for Alex Osola. This is the PM edition of What's News, the top headlines and business stories that moved the world today. Consumer sentiment continues to sour among Americans.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
Some U.S. businesses that have cut too many jobs are turning to ex-employees to rejoin their ranks. Among them, thousands of federal workers who have been let go and recalled in recent months. Callum Borchers talked to our Your Money briefing about how common such rehiring might be.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
And you can hear more about how to deal with such renewed job offers on today's episode of Your Money Briefing. And that's what's news for this week. Tomorrow, you can look out for our weekly markets wrap-up, What's News in Markets. Then on Sunday, we'll be looking at what's in store as the U.S. embarks on its biggest public health shakeup in modern history. That's in What's News Sunday.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
And we'll be back with our regular show on Monday morning. Today's show was produced by Anthony Bansi with supervising producer Michael Kosmides. Additional support this week from Adam Falk. Michael LaValle wrote our theme music. Aisha Al-Muslim is our development producer. Scott Salloway and Chris Sensley are our deputy editors.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
And Falana Patterson is The Wall Street Journal's head of news audio. I'm Pierre Bien-Aimé. Thanks for listening.
WSJ What’s News
How Trump’s Pressure on the Fed Could Undermine Confidence in Its Next Chair
According to the University of Michigan's closely watched measure, U.S. households ended April feeling much worse about the economy than they did in March. Its final index out today of consumer sentiment for April was 52.2, down from 57 the prior month. Respondents said they expect prices to surge 6.5 percent over the next year, up from expectations in March for a 5 percent increase.