Americans are getting fed up with the economy. Does that mean we’re heading into a recession?

American consumers and businesses are feeling uneasy, fearing higher inflation is lurking around the corner as President Donald Trump talks massive tariffs. That’s raising questions on what America’s souring economic mood means for spending, hiring and the future of the world’s largest economy.

American consumers and businesses are feeling uneasy, fearing higher inflation is lurking around the corner as President Donald Trump talks massive tariffs. That’s raising questions on what America’s souring economic mood means for spending, hiring and the future of the world’s largest economy. “The kinds of changes that are occurring under Trump are arguably unprecedented, and it’s making people very nervous,” Mark Zandi, chief economist at Moody’s, told CNN. “If confidence continues to fall for another three months, and consumers actually pack it in, then game over.” Inflation fears, due to Trump’s tariffs, are putting America on edge, according to various surveys: Consumer confidence fell sharply in February, registering its sharpest monthly decline since August 2021, The Conference Board said Tuesday. The National Federation of Independent Business, which has been collecting data since 1973, reported its third-highest reading ever on its Uncertainty Index for January. Pessimism is also becoming apparent on Wall Street. Investor sentiment on Tuesday shifted into “extreme fear,” which hasn’t happened since December, according to CNN’s Fear & Greed Index. But gloomier attitudes don’t usually lead to a pullback in spending, according to economists. For instance, in June 2022, when consumer sentiment plunged to a record low as inflation reached a four-decade high, American shoppers continued to spend in the following months. But souring attitudes this time around, driven by uncertainty sowed by the Trump administration, could actually weigh on the economy if they persist.