Economic uncertainty is seeping into consumer expectations, which can become something of a self-fulfilling prophecy, an Aspen Institute economist says.

Even high earners feel sour about price inflation and the rising cost of housing.

The Conference Board reported the biggest monthly decline in consumer confidence since 2021. And the University of Michigan reported a sharp increase in inflation expectations.

Inflation expectations vary by political affiliation, especially with tariffs in the mix. But fears of inflation can be self-fulfilling.

Inflation and tariff fears contributed to a decline of 10% in the University of Michigan’s latest survey.

Taxes on goods the U.S. imports will affect what consumers pay, but will we see one-time price hikes or a more persistent form of inflation?

A key measure of consumer confidence finds consumers anticipating worse economic conditions.

Turns out it’s a bit of both — and measurable.

Confidence was expected to continue to rise. Consumers cite inflation, politics and tariffs as factors they see influencing the economy.

The University of Michigan survey was done before Election Day. Optimism about future economic conditions is at best level in nearly four years.