U.S. consumer sentiment dropped to 50.8 in May, nearing historic lows, as inflation expectations soared. The University of Michigan reports that one-year inflation expectations jumped to 7.3%, the highest since 1981, with long-term forecasts also rising. The decline reflects growing public concern over the economic fallout from President Donald Trump’s aggressive and unpredictable trade policies, despite a temporary U.S.-China tariff truce.