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U.S. consumer sentiment plunged in April, the fourth consecutive month of declines, in a seemingly sharp rebuke of President Donald Trump's trade wars that have fueled anxiety over possible job losses and rising inflation. The preliminary reading of the University of Michigan’s closely watched consumer sentiment index, released Friday, fell 11% on a monthly basis to 50.8, the lowest since the depths of the COVID-19 pandemic. The decline was “pervasive and unanimous across age, income, education, geographic region, and political affiliation,” said Joanne Hsu, director of the survey.

Oil is off by more than $10 per barrel since President Trump's "Liberation Day".

Prices of interest-rate futures continue to reflect expectations that the U.S. central bank will start reducing its policy rate in June, though with less certainty than earlier, with the market-indicated probability around 75%, versus more than 80% earlier in the day. Traders see the Fed delivering three rate cuts in total over the course of the year, pulling back from bets on a fourth rate cut.

Boston Fed president Susan Collins told Yahoo Finance she expects the central bank to hold rates where they are for "longer" due to economic uncertainties triggered by President Trump’s tariffs but it may still be possible to cut toward the end of the year.

WASHINGTON (Reuters) -U.S. consumer sentiment deteriorated sharply in April and 12-month inflation expectations surged to the highest level since 1981 amid unease over escalating trade tensions. The University of Michigan Surveys of Consumers on Friday said its Consumer Sentiment Index dropped to 50.8 this month from a final reading of 57.0 in March. "Consumers report multiple warning signs that raise the risk of recession: expectations for business conditions, personal finances, incomes, inflation, and labor markets all continued to deteriorate this month."

Noting high uncertainty over the effects and timing of tariffs and other new policies and the "distinct possibility" that inflation reaccelerates even as the labor market softens, Musalem said Fed policy is well positioned and should remain vigilant. "I would be wary of assuming the impact of high tariffs on inflation would be only brief or limited," Musalem told the Arkansas Bankers Association. "I consider it appropriate to 'lean against' second-round effects with monetary policy, although discerning between underlying inflation and the direct, indirect and second-round effects of tariffs is likely to be challenging in real time."

(Reuters) -Federal Reserve Bank of Boston President Susan Collins said Friday that financial markets, which have been under massive pressure, appear to be holding in, in comments made in an interview with Yahoo Finance. “Markets continue to function well,” Collins said in the interview, adding “financial market movements are something to stay focused on” amid a huge range of uncertainty tied to trade policy. Collins' comments to Yahoo come after a speech the official made late Thursday that flagged the uncertain outlook caused by the Trump administration's tariffs, amid expectations the big rise in import taxes imposed by the president will drive up inflation and depress growth for a time.