The latest data shows a significant decline in US consumer confidence in February, marking the largest drop in four years, reflecting intensified public concerns about the economic impact of Trump's policies.

Inflation expectations rise to 6%, the highest since May 2023. Interest rate futures show that the market expects the Fed to cut rates by 25 basis points to 4.00%-4.25% in June, with a probability of over 70% of another rate cut in September, indicating that the Fed will prioritize addressing the soft labor market rather than inflation pressures.

However, Bank of America CEO Moynihan expects the Fed to keep interest rates unchanged in the next two years, saying that the fight against inflation needs to continue until 2026. This Friday's PCE report will reveal the progress of inflation. The Fed is currently holding rates steady, emphasizing the need for more evidence that inflation will fall back to 2%.