Steve Odland, The Conference Board CEO, joins 'The Exchange' to discuss consumer confidence dipping in August, impact of tariffs and what it means for the economy. He says consumers are neutral as they wait to see tariffs play out.

Washington

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

Consumer confidence has shown only slight fluctuations, with most consumers maintaining a neutral outlook as they await clarity on tariffs and inflation. The Conference Board's CEO, Steve Odlin, noted that while inflation expectations have risen and concerns about the labor market persist, the overall sentiment has not shifted dramatically.

Younger consumers are notably less optimistic, likely due to their experiences with major economic disruptions over the past two decades. Despite uncertainty, purchasing intentions for cars have increased, reflecting the necessity of reliable transportation. Both consumers and CEOs are waiting for trade agreements and interest rate changes to provide greater economic certainty.

Why consumers are neutral as they wait for tariffs to play out

Consumer confidence ticked slightly lower in August amid growing concerns about the labor market, while still month inflation, 12-month inflation expectations climbed higher after three straight months of declines, she tried to say. Joining me to discuss is Steve Odlin, CEO of the Conference Board. He's also a CNBC contributor. Steve, look, I know it ticked down a little bit, but by and large, the consumer is really holding up despite all of these headwinds in their face. Do you agree? Yeah, these are really tiny ticks. I mean, it's been pretty constant here over the past several months bouncing around a little bit. You do see some less positivity among younger consumers, but you'd see more positivity among the older consumers. Net-net, consumers are in neutral and they're all waiting for the tariff situation to resolve itself. And inflation is still weighing on people, groceries and gas, some of the things that are everyday pocketbook items. So it would behoove the administration here to get these trade deals done to create some certainty, provide that for consumers. By the way, it's also true of CEOs. CEO confidence is also stuck in neutral here, waiting for this uncertainty to lift, to understand what their costs are going to be and where inflation is going. So all of this points to please get this done. You know, and I do find it very interesting to your point about sort of the younger consumers potentially being a little bit more negative, more pessimistic about where things are going. I was thinking about it. It sort of points to the 35 and under. So let's say someone born in maybe 1990 or after. And if you think about it, they were what, about 10 years old when we saw the tech bubble bursting and then there was 9-11. And then maybe right around the time they were entering the workforce, we had the financial crisis coming about and then the housing market crash. So then if they wanted to afford a home afterwards, when we saw the rebound in the pandemic, it was much harder. I mean, I'm just wondering if all of those influence sort of play away on, play on, on, on the way that they see the economic environment for themselves, because it was so impactful in those early years. Well, look, you know, there are least experienced consumers and there's been a lot of black swan events, you know. But also look how valuable they are in their, in their earning years, right? Yeah, that's right. But they have the least wealth too. So if you've got a lot of wealth and you know, you're covered, you don't worry about it as much. It's always true among the younger consumers, but that's a relevant base or, you know, it got getting to be a big chunk of employees and certainly a voting base. It is very interesting when we've been talking a lot about the soft data versus the hard data. And in this report, the consumers sort of look at their personal financial situation and say things are okay, but their expectations of a recession keeps ticking higher. What do you make of that? Well, it comes back to, you know, where's inflation going, you know, and, and when are interest rates going to come down? We were just talking about the Fed a moment ago. And as long as they stay high, the housing market's in neutral, that then becomes, you know, inaccessible for a lot of these younger consumers. So it just goes on and on. And the uncertainty here creates a pile over the economy and it is reducing growth. So I think we've got to get to, you know, a more normalized situation with interest rates, with tariffs, with costs, so that we can then get back to business and then the growth will pick up. And I think confidence will as well. But, but speaking of the tariffs, it's also interesting that the purchasing intentions for cars rose in August, both new and used. And we know that those are seeing car prices are seeing pressures from tariffs. And we also already saw some strength. So what do you make of that? That's a very big purchase decision for someone that might be a little uncertain about what the economy is bringing in the price of a car. Well, you know, I used to be the CEO of AutoZone. What we learn constantly is that cars are a tool and they, you need an automobile that's working reliably in order to get to school, in order to get to work. So it's not necessarily viewed as a luxury item. It's viewed as something that is absolutely required in order to carry on their daily lives. And so, you know, when they come to an end of life on these cars and the age of cars is the highest it's ever been, and you've got end of leases and so forth, you do see a pent-up demand here.

Protesters demanding an end to the Gaza war and the return of hostages to their homes took to the streets in Israel on Tuesday ahead of a security cabinet meeting scheduled for the evening.

Tel Aviv-Yafo

Middle East Conflict

Israeli protesters demand hostage deal as cabinet set to meet

Australia accused Iran on Tuesday (August 26) of executing two antisemitic arson attacks in the cities of Sydney and Melbourne and gave Tehran's ambassador seven days to leave the country, its first such expulsion since World War Two.

Council of the City of Sydney

Australia expels Iranian envoy over antisemitic attacks

President Donald Trump announced the removal of Federal Reserve Governor Lisa Cook, the only Black woman to serve on the board. Critics call it an attack on the Fed's independence, while Cook says no legal cause exists for her firing.

Trump says he fired Lisa Cook from Federal Reserve board

U.S. President Donald Trump signed an executive order creating new National Guard units, including a rapid-response force to handle what the administration calls civil disturbances.

White House authorizes creation of rapid-response National Guard units

Billionaire entrepreneur Elon Musk’s artificial intelligence startup xAI sued Apple and ChatGPT maker OpenAI in U.S. federal court in Texas, accusing them of illegally conspiring to thwart competition for artificial intelligence.

Texas

Rise of AI

Elon Musk's xAI sues Apple, OpenAI over competition claims

Strikes on the Nasser hospital in Gaza that left at least 20 people dead, including rescuers, journalists and health-care workers are being met with global outrage. The Israeli military is investigating what Israel Prime Minister Benjamin Netnayahu called a ‘tragic mishap.’

Israeli PM calls deadly strikes on Gaza hospital a ‘tragic mishap’

Kilmar Abrego Garcia is back in ICE custody and is facing deportation to Uganda, the Department of Homeland Security says, after he was released from criminal custody last week.

Baltimore

Abrego Garcia in ICE custody, court blocks immediate deportation

Ukrainian President Volodymyr Zelenskyy said he will meet with the U.S. and other countries this week to discuss a potential meeting with Russian President Vladimir Putin aimed at reaching a ceasefire.

Kyiv

Ukraine Invasion

Zelenskiy say he will meet with U.S., others on potential Putin talks

U.S. President Donald Trump says Chicago could be the next city to see National Guard deployment, sparking strong opposition from Mayor Brandon Johnson and Governor JB Pritzker, who argue crime is already falling and federal intervention is unnecessary.

Chicago

Trump threatens to send National Guard troops to Chicago

Four journalists working with Reuters, Al Jazeera and others were killed in explosions at a Gaza hospital. Gaza officials blame Israeli drone strikes, though CBS News has not independently verified the claims.

Jerusalem

Four journalists reported dead after Gaza hospital blasts

U.S. National Guard troops patrolling the streets of Washington D.C. as part of what President Donald Trump said was his crackdown on crime began carrying weapons on Sunday night, two officials said.

National Guard patrolling Washington DC begin carrying weapons

In a visit to Kyiv, Prime Minister Mark Carney affirmed Canada’s support for Ukraine and committed to sending soldiers if a ceasefire with Russia is reached.

Carney in Kyiv pledges support, possibly troops for Ukraine

The Pickett Fire is growing in California's Napa County, prompting new evacuations as it threatens homes and wineries. The flames, fueled by scorching temperatures and dry conditions, are being battled by hundreds of first responders.

Napa Valley

Evacuations ordered in California as heatwave fuels wildfire

Democrats are pushing back against President Trump's plan to send the National Guard to more cities, including Chicago, New York and Baltimore, as troops continue to patrol Washington, D.C. State and local leaders say they have crime under control.

Democrats slam Trump's plans to send National Guard to more cities

Beef prices are at record highs with the average price of a pound of ground beef topping $6. Lisa Rozner reports on what's causing prices to soar.

Why U.S beef prices are soaring

A defiant Ukraine marked its independence from the former Soviet Union Sunday amid more fighting with Russia. Chris Livesay reports on how world leaders joined in, voicing their support.

Ukraine marks its Independence Day as war with Russia continues

The boats are produced by unknown Turkish companies and are then sent disassembled in multiple shipments to avoid suspicion in what authorities say is for the sole purpose of trafficking migrants across the English Channel.

Sofia

Inflatable boats used for migrant trafficking seized

Less than 24 hours after he was released from jail, Kilmar Ábrego García was told that U.S. immigration officials plan to deport him to Uganda. The Salvadoran national, who has been living illegally in the U.S. since about 2011, was wrongly deported to his home country earlier this year.

Maryland

Kilmar Abrego Garcia told he may be sent to Uganda

Erik and Lyle Menendez remain behind bars, their hopes for release dashed by two separate parole boards more than three decades after murdering their parents. Elise Preston reports.

Los Angeles

Erik and Lyle Menendez denied parole

Tourism in Las Vegas is slumping this summer, costing the city billions. That could signal trouble ahead for the U.S. economy. Andres Gutierrez has new details.

Las Vegas

Las Vegas tourism slumps this summer, signaling trouble for U.S. economy

Texas Republicans took a victory lap after an early morning vote Saturday that sought to give their party an edge during the 2026 midterms. Democrats in Texas plan to challenge the legality of the new congressional map, saying it dilutes the power of minorities.

Austin

Texas Republicans take victory lap after redistricting vote

Israel has called the United Nations' declaration of famine in parts of Gaza an "outright lie," but multiple U.N. bodies, more than 100 humanitarian groups, and several of Israel's own allies have warned for months that the war is causing starvation among civilians.

Israel denies U.N.'s declaration of famine in parts of Gaza

U.S. President Donald Trump says he will impose sanctions on Russia if it fails to reach a peace deal in Ukraine within two weeks. But Ukrainian President Volodymyr Zelenskyy says Russia’s ongoing attacks on his country show that President Vladimir Putin is not interested in peace.

Putin’s not interested in peace talks, Zelenskyy says

Lyle Menendez was denied parole late Friday night following a day-long hearing in California, just one day after his brother Erik's parole appeal was also rejected. The brothers have been in prison since 1996 for killing their parents in what they say was an act of self-defense.

Both Menendez brothers denied parole

At least five people are dead and dozens are injured after a tour bus traveling from Niagara Falls flipped over on the New York State Thruway near Pembroke, New York.

Pembroke

Western New York bus crash kills at least five people

Federal agents searched former Trump adviser-turned-critic John Bolton's home on Friday morning. President Donald Trump denied knowing about the investigation, which is related to his handling of classified documents.

Bethesda

FBI raids former Trump adviser John Bolton's home, office

The FBI searched former national security adviser John Bolton's house in Bethesda, Maryland, early Friday morning, the bureau confirmed to CBS News.

FBI raids former Trump adviser John Bolton's home, D.C. office

Kilmar Abrego Garcia, the Maryland construction worker deported to El Salvador and then returned to the U.S. on smuggling charges, has been released from prison in Tennessee, his attorneys say.

Why consumers are neutral as they wait for tariffs to play out

Breakdown

See The Full Story

Global Tariffs