Credit Sesame’s personal finance news roundup April 19, 2025. Stories, news, politics, and events impacting personal finance during the past week.
Consumer sentiment drops sharply across the board
The University of Michigan Index of Consumer Sentiment declined 11% over the past month, with the latest survey describing the drop as “pervasive and unanimous across age, income, education, geographic region, and political affiliation.” The index is now down 30% since December 2024. The share of consumers expecting unemployment to rise has increased for five straight months, doubling since November 2024 and reaching its highest level since 2009. Meanwhile, inflation expectations rose from 5.0% to 6.7% last month—the fourth consecutive month of increases of 0.5% or more—pushing the average outlook to its highest level since 1981. See consumer sentiment report at UMich.edu.
New York Fed survey shows worsening outlook
The New York Fed’s latest Survey of Consumer Expectations mirrors the gloomy outlook from the University of Michigan, projecting slower growth and higher inflation. Expectations for household income over the next year declined by 0.3% in March to 2.8%, while perceived job loss risk rose, particularly among households earning under $50,000. Median household spending expectations slipped by 0.1% to 4.9%. More households now report that obtaining credit is harder, and expect conditions to worsen in the year ahead. See details at NewYorkFed.org.
U.S. credit scores dip slightly in early 2025
FICO reports that the average U.S. credit score is now 715, down 1 point since January and 2 points from a year ago. The decline is largely attributed to the resumption of reporting on student loan delinquencies and a broader increase in missed payments. However, seasonal decreases in credit card utilization helped offset the trend and offered a modest lift to scores. See news release at FICO.com.
Trump administration removes Democratic NCUA board members
The Trump Administration has removed Democratic board members Todd Harper and Tanya Otsuka from the National Credit Union Administration, leaving only Republican Chairman Kyle Hauptman in place. Harper, initially appointed by Trump in 2019, and Otsuka were both serving on the three-member board overseeing the $2.3 trillion credit union sector. The NCUA, created by Congress in 1970, functions as an independent agency to insure and supervise credit unions. See article at Reuters.com.
Mortgage rates spike after stable stretch
Thirty-year mortgage rates rose 0.21% last week to 6.83%, ending a six-week period in which rates had hovered within a narrow 5-basis-point range. Fifteen-year mortgage rates also jumped by 0.21% to reach 6.03%, their highest level since mid-February. The increase may be driven by renewed concerns about inflation, which are pushing interest rates upward. See rate details at FreddieMac.com.
March 2025 retail sales rebound, but early-year weakness lingers
Retail sales climbed 1.4% in March—the most substantial monthly gain since early 2023—according to Census Bureau data. However, earlier declines of 1.2% in January and a sluggish 0.2% rise in February temper the optimism. Some analysts believe March’s surge may have been driven by consumers rushing to buy high-priced items before new tariffs take effect, boosting current spending at the potential expense of future demand. See article at Yahoo.com.
Tensions rise between Trump and Fed over rates
Fed Chair Jerome Powell’s comments about taking a wait-and-see approach to further rate changes were met with criticism from President Trump. Powell cited uncertainty from new tariffs, which could both increase inflation and slow economic growth, posing a challenge to the Fed’s dual goals of maintaining price stability and promoting economic growth. Trump responded by calling for Powell’s “termination,” believing that rate cuts would stimulate the economy. Meanwhile, market conditions limit the Fed’s flexibility, with Treasury yields surging in response to inflation fears. See article at Yahoo.com.
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