Rich Americans Turn Cautious as Gas Prices Jump and Markets Wobble

CNN reports that sentiment among Americans across income levels has sunk amid higher energy costs tied to the Iran conflict and volatile markets. The University of Michigan index fell to 53.3, its lowest since December, with wealthier households showing particularly large declines. Gas prices have risen, lifting near-term inflation expectations (about 3.8%), though longer-run inflation expectations edged lower. Yet consumer spending hasn’t collapsed thanks to a still-tight labor market and wage growth, even as retail sales slipped. If the Iran war drags on, inflation could rise further and threaten a recession, underscoring the fragility of the current consumer-spending engine.