Consumer confidence in May rebounded after trade tensions eased, however, trade uncertainty continues to weigh heavily on consumers and businesses. Trade policy is the main contributor to volatility in capital markets, and it appears these conditions will continue in the near term.

Since the bulk of tariffs against other countries were announced on April 2, there has been a continued disconnect between most economic data and consumer sentiment. Consumers have expressed fears that tariffs will boost inflation and the current cooling in the labor market could accelerate.

But for now, recent inflation readings have shown the pace of price increases continuing to fall and weekly filings for unemployment benefits have held steady.