• Inflation expectations have surged to levels not seen since the early 1980s.
• Consumer confidence is collapsing amid rising prices and growing fears of job losses.
• Physical gold offers a reliable way to protect your finances during times of economic uncertainty.

 Consumer’s Grim Outlook

Inflation expectations are on the rise and consumer sentiment is falling fast. Making for a troubling combination that signals deeper economic strain ahead. When people begin to expect prices to keep climbing and feel less confident about the future, spending slows, and financial uncertainty grows.

The University of Michigan released their latest consumer survey. Americans now expect prices to jump by 7.3% over the next year. That is the highest inflation expectation recorded since 1981. At the same time, consumer sentiment plunged to new lows. The drop was due, in part, by the threat of new tariffs and the ripple effects of rising costs. This sharp shift in outlook has once again brought gold into focus as a time-tested hedge against inflation and volatility.¹

The Tariff Effect

One of the driving forces behind rising inflation expectations is the growing burden of tariffs. In fact, the effective tariff rate in the United States is now 17.8%, the highest it has been since 1934. The concern is not just academic. Major companies are sounding alarms about the potential impact on prices.²

Walmart, along with more than 400 other companies in the S&P 500, issued a warning. They said higher tariffs on imported goods from China could soon be passed along to American consumers. Even after recent adjustments, many tariffs remain steep. Walmart CEO Doug McMillon said, “even at the reduced levels, the higher tariffs will result in higher prices.”³

Estimates from Yale University’s Tobin Center for Economic Policy suggest the impact could be significant. Their analysis shows the average American household could face an additional $2,800 in annual costs due to these tariffs.

Long Term Inflation Expectations Reach a Historic High

There aren’t just short-term concerns. The University of Michigan’s report also revealed long-term inflation expectations have increased. They reflect what consumers believe will happen over the next five years.

Joanne Hsu is director of the University of Michigan’s consumer surveys. She points out that inflation expectations influence real economic behavior. When people believe prices will go up sharply, they often speed up purchases. Or they push for higher wages. The very things that lead to actual inflation.

Consumer psychology remains fragile despite signs that inflation may be easing. April inflation showed the slowest annual pace since February 2021. “Uncertainty over trade policy continues to dominate consumers’ thinking about the economy,” Hsu said.⁴

⁵

This shift in expectations also signals a growing disconnect between “hard data,” like retail sales and job reports, and “soft data,” such as consumer sentiment. Retail sales remained positive in April. U.S. payrolls rose by 177,000. And unemployment held steady at a historically low 4.2%. Despite this, “consumers continue to express somber views about the economy,” Hsu said.

Consumer Sentiment Collapse

There was another troubling sign from the survey. The University of Michigan’s May consumer sentiment index dropped 30% drop since December. That’s the second-lowest level ever recorded. 

The main reason behind the decline is widespread anxiety about the impact of tariffs and potential job losses. Two-thirds of respondents now expect unemployment to rise in the year ahead. That’s the largest share since 2009.

Perhaps most notably, this sentiment shift is not limited to lower-income Americans. “We’re still seeing huge declines across income but most notably at the top of the income distribution,” Joanne Hsu continued.⁶

Some economists worry that resilience isn’t going to hold this time around. Americans are worried about their income and the labor market in ways not seen in 2022. The survey suggests consumers expect a large shock to their personal finances. Many are reporting weakening incomes. Assessments of personal finances fell 10 points in early May to the lowest since 2009. Meanwhile, the outlook on their future finances dropped to the lowest on record.

Wall Street Sees the Risk

JPMorgan recognizes the shift in sentiment. Their CEO, Jamie Dimon, recently warned against complacency in the face of mounting risks. He cited everything from inflation and credit spreads to geopolitics. Dimon said the chances of elevated inflation and stagflation are greater than people think. He also cautioned that America’s overvalued asset prices aren’t accounting for the impacts of a potential downturn.

JPMorgan has already taken steps to prepare for possible turbulence. The bank said it had added $973 million to the pile of money it sets aside to cover soured loans. Dwarfing analyst expectations. Moves like this highlight the growing concern over the economy’s direction.⁷

Conclusion

Inflation expectations are at their highest in decades and consumer confidence is near record lows. Now is a critical time to reassess your financial strategy. Physical gold, whether in the form of coins, bars, or in a Gold IRA, offers a powerful hedge against inflation. Whether actual or expected.

As hopes dim, gold is increasingly seen as insurance against an uncertain future. To learn how to protect your retirement with physical gold, call American Hartford Gold today at 800-462-0071.

Notes:
1. https://www.retaildive.com/news/inflation-expectations-12-months-surge-73-percent-fueled-by-tariff-worry-Trump-unemployment/748418/
2. https://www.retaildive.com/news/inflation-expectations-12-months-surge-73-percent-fueled-by-tariff-worry-Trump-unemployment/748418/
3. https://www.retaildive.com/news/inflation-expectations-12-months-surge-73-percent-fueled-by-tariff-worry-Trump-unemployment/748418/
4. https://www.retaildive.com/news/inflation-expectations-12-months-surge-73-percent-fueled-by-tariff-worry-Trump-unemployment/748418/
5. https://x.com/YunaIoana/status/1923722227339461032
6. https://www.axios.com/2025/05/19/tariffs-consumer-economy-sentiment
7. https://www.bloomberg.com/news/articles/2025-05-19/jpmorgan-s-dimon-warns-against-complacency-amid-mounting-risks

 

• The upcoming BRICS Summit may redefine global economic power, challenging U.S. dollar dominance.
• De-dollarization is accelerating, with BRICS nations conducting 67% of trade in local currencies.
• Physical gold emerges as a critical hedge against currency instability as BRICS influence grows.

Global Power Shift Endangers Financial Security

In just a couple of months the world economy may shift irrevocably. The 17th BRICS Summit convenes this July in Rio de Janeiro. It marks Brazil’s turn at the helm of an expanded bloc that now includes Indonesia, Egypt, Ethiopia, Iran and the United Arab Emirates alongside its original five members. This meeting could usher in a truly multipolar era as BRICS nations rise at the expense of the U.S. dollar. And bring potentially deep consequences to the value of your retirement funds.

BRICS Ascendant

¹

Combined gross domestic product (GDP) in purchasing power parity (PPP) of the BRICS Plus and G7 countries from 2000 to 2025

Since the BRICS bloc’s GDP growth hit 3.4% in 2025, more than double the U.S. forecast of 1.4%, investors can’t ignore their momentum. High‑growth BRICS members span from Ethiopia at 6.6% to India at 6.2% and Indonesia at 4.7%. Meanwhile China posts 4% and South Africa 3.4%. Even Brazil, the host of July’s summit, is expected to expand by 2.3%. In contrast, America is facing limited growth and threatened trade. Domestic markets are left playing catch‑up and vulnerable to global headwinds.²

Beyond headline GDP, BRICS nations now account for 40% of global output. They are projected to command 41% of world purchasing‑power parity in 2025 . That scale gives them outsized sway over commodity markets. From oil and gas supplied by Russia and food exports from Brazil to strategic minerals sourced throughout the bloc. Rodrigo Cezar of the Getulio Vargas Foundation noted that BRICS will be “very relevant in terms of dictating or giving direction to the prices of these materials.” U.S. consumers may find themselves at their mercy.³

De-dollarization Accelerates

This economic heft underpins a deliberate move away from the U.S. dollar. Russian Foreign Minister Sergey Lavrov revealed that just 33% of intra‑BRICS trade is now settled in dollars. The remaining 67% is conducted in local currencies. China’s yuan alone is set to represent 24% of those transactions by year‑end. At the same time, member states are developing their own settlement platforms and credit lines to bolster autonomy . By fragmenting dollar dominance, the bloc not only shields itself from U.S. monetary policy. They are also chipping away at Washington’s financial leverage.⁴

BRICS cohesion shouldn’t be doubted. Russia and China recently signed a comprehensive strategic partnership. Russian President Vladimir Putin declared, “In our joint statement with Xi Jinping, we set ambitious tasks… In particular, we are talking about ensuring a significant qualitative advancement of Russian‑Chinese trade and investment by 2030.”⁵

This pact reinforces the alliance’s economic, scientific, and digital integration. Further eroding the dollar’s, and the U.S.’s, centrality.

Wall Street Concern

Wall Street’s biggest names are sounding alarms. In its latest research, JP Morgan warned that the dollar’s “longstanding overvaluation is beginning to unwind.” They are predicting a 10%–20% decline in the U.S. Dollar Index over the medium term. A 10% drop would push the index into the 90s; a 20% slide could see it sink into the low 80s. These projections show the risks ahead for dollar‑denominated assets and portfolios.⁶

In practical terms, this means your dollar won’t stretch as far. Everyday goods imported from abroad could become more expensive. In other words, a weaker dollar erodes the purchasing power of your savings.

At Berkshire Hathaway’s 60th annual meeting, Warren Buffett warned against the U.S. dollar. He cautioned, “We would not really invest in a currency … that is going to hell.” Buffett criticized “alarming” fiscal behavior. He hinted that Berkshire could take positions in other currencies. Saying “There could be things happening in the United States that make us want to own a lot of other currencies”. ⁷

Gold

In a developing era of multipolar currencies and de‑dollarization, gold stands out as a proven store of value. Unlike paper monies, gold cannot be printed or devalued by fiscal policy. Its scarcity and global recognition make it the ultimate hedge. History shows that during periods of currency weakness, gold preserves purchasing power. And provides portfolio stability.

For those planning retirement, a Gold IRA offers both protection and peace of mind. It allows you to sidestep the risks of paper currency and financial system fragility. The BRICS’ rising influence and the dollar’s potential reset are creating uncertainty. Having a tangible asset like gold can help ensure your nest egg weathers any storm.

Conclusion

Don’t wait to see how the 17th BRICS Summit reshapes the monetary order. Learn about securing your retirement today by adding physical gold to your portfolio. Call American Hartford Gold at 800-462-0071 to find out how a Gold IRA can safeguard your future against the shifts in global economic power.

Notes:
1. https://www.statista.com/statistics/1412418/gdp-development-g7-brics/
2. https://watcher.guru/news/gdp-of-brics-countries-outperforms-global-average-us-distantly-behind
3. https://watcher.guru/news/gdp-of-brics-countries-outperforms-global-average-us-distantly-behind
4. https://www.cointribune.com/en/the-brics-are-accelerating-their-transition-to-local-currencies/
5. https://watcher.guru/news/brics-china-russia-announce-new-major-partnership
6. https://watcher.guru/news/brics-jp-morgan-predicts-20-decline-in-the-us-dollar
7. https://watcher.guru/news/brics-warren-buffett-says-us-dollar-going-to-hell-invests-in-local-currencies