The final March reading of the University of Michigan’s consumer sentiment survey found the mood worsening among Americans of all political persuasions.

The preliminary reading had already raised eyebrows among investors, yet the final data turned out even worse than feared. Five-year ahead inflation expectations — which reflect American consumers' perceptions of more structural inflation concerns — jumped to 4.

The Federal Reserve closely watches long-term inflation expectations, which can presage resurging inflation. Earlier Friday morning, the personal consumption expenditures report from the Commerce Department suggested that underlying inflation may be heating, up, which may have the Fed holding off on further interest rate cuts.