Consumer confidence in the U.S. saw its biggest monthly decline since August 2021, dropping to 98.3 in February 2025 from 105.3 in January, as inflation fears and tariff concerns rattled households. The Conference Board’s report highlighted a rise in 12-month inflation expectations to 6%, making consumers more cautious about spending. Stock markets reacted negatively, with the S&P 500 falling 0.9% and the Nasdaq dropping 1.8%. If confidence continues to weaken, it could slow down retail sales and economic growth, raising recession risks. The Federal Reserve may face pressure to adjust policies in response to rising uncertainty.