Consumer sentiment falls by nearly 8% in August

Matthew Pearce

THOUSAND PALMS, Calif. (KESQ) — Inflation remains persistent, leading the 30-year Treasury yield to reach a 19-year high of 5.33%.

Amid inflation concerns, consumer sentiment fell nearly 8% in August, wiping out the gains from the past two months.

The decline in sentiment was pervasive across a wide range of demographics but was notably greater among older consumers, low-income earners and those without a college degree, according to the University of Michigan’s Survey of Consumers.

In 2026, the index of consumer sentiment has fallen to a quarterly reading of 48 — its lowest point since the University of Michigan began its Survey of Consumers in 1978. Furthermore, the personal finance rating of 63 is only three points above the 60 rating reported in 2008 during the subprime mortgage crisis.

The low sentiment comes alongside rising financial pressure on households, according to federal data. A Federal Reserve survey found that 23% of renters were behind on rent in 2026, representing a 6-percentage-point increase over five years, while total credit card debt reached $1.28 trillion after growing nearly 50% during the same timeframe.

Many residents report making significant lifestyle adjustments to cope with living expenses. Phyllis Levine, a retired resident of Palm Desert, said her fixed income has not kept pace with costs.

“I live alone and I live on my Social Security and I have a small pension from when I worked, but not enough,” Levine said before addressing the ongoing costs and expressing concern for future generations.

“I don’t know why they keep going up… I don’t think in my time that it’s going to go down, but I hope for my family that it does,” Levine said.

Despite consumer concerns, some economic analysts say public sentiment does not reflect macroeconomic indicators. Chris Thornberg, a founding partner of Beacon Economics, said economic metrics do not explain the low sentiment levels.

“There is no economic information that would back up this incredibly low consumer sentiment,” Thornberg said.

Addressing public perceptions regarding household income, Thornberg said overall wage data shows growth relative to general inflation.

“So to the people who, who son’t necessarily think wages have kept up with the, the prices of everyday goods: gas, groceries,” News Channel 3’s Matthew Pearce asked.

“You’re wrong,” Thornberg interjected. “The data is abundantly clear that wages, earnings, household income have all risen faster than the rate of inflation over the last five years.”

Data from the Bureau of Labor Statistics shows a nuanced picture when comparing earnings to specific consumer goods over the past five years. Average hourly earnings rose approximately 23% over the five-year period, yielding about 0.7% in real wage growth above overall consumer prices. However, prices for specific household necessities grew faster than hourly wages, with gasoline prices rising about 27% and grocery prices increasing about 24% over the same period.

Thornberg also discussed monetary mechanisms and how inflation pressures interact with policy decisions.

“You expand the money supply,” Thornberg said. “You increase inflation pressures. It’s as simple as that. So thats how they’ll inflate their way out of it.”

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Missing teen from Palm Springs found

Tommy Gallegos

PALM SPRINGS, CA- (KESQ) UPDATE- Riverside County Sheriff’s say Isabella Paola Rojas has been located and is safe.

ORIGINAL REPORT

The Riverside County Sheriff’s Department is asking for the public’s help locating 14-year-old Isabella Paola Rojas, who was last seen in the 22000 block of Sterling Avenue in Palm Springs.

Rojas was last seen on August 15, 2026, and has since been entered into the missing person database as a runaway.

Isabella is described as 5 feet 4 inches tall, weighing approximately 138 pounds, with black hair and brown eyes. Her clothing description is unknown, but authorities say she is known to wear all-black clothing.

Anyone with information about Isabella’s whereabouts is urged to contact Riverside County Sheriff’s Dispatch at 800-950-2444.

Please share this information to help bring Isabella home safely.

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Officials tackle New River pollution, cleanup efforts in Calexico

Luis Avila

CALEXICO, Calif. (KESQ) — Federal, state and local officials gathered in Calexico Tuesday to address longstanding concerns over pollution in the New River and its potential impact on communities across the Imperial and Coachella valleys.

Congressman Dr. Raul Ruiz joined state, federal, and other local officials for a tour of the New River.

The visit was part of a broader effort to improve water quality, strengthen cooperation between agencies in the U.S. and Mexico, and address pollution at its source.

Officials later held a public roundtable at the City of Calexico’s Fernando “Nene” Torres Council Chambers. Discussions focused on ongoing improvements to the river, infrastructure needs, binational coordination and a water sampling study involving multiple agencies.

Ruiz said officials are working to finalize the study before reaching a negotiated agreement that could help move cleanup efforts forward more quickly.

“We are currently finalizing a water study that was done by all the different agencies,” Ruiz said. “Once we get the negotiated agreement just like they did for the TJ River then things can move a lot quicker than they would otherwise happen.”

EPA officials said addressing the New River will require both infrastructure improvements and efforts to hold Mexico accountable for pollution crossing the border.

The pollution has also raised concerns for people who live and work around the river and for nearby communities.

“I talk to some of our first responders. When there’s a car accident in the river or someone in the river, when they put their foot in, they come out with rashes, they come back injured. I am hearing about cancer clusters, asthma,” said Assemblymember Jeff Gonzalez.

The New River flows from Mexico through Calexico and eventually drains into the Salton Sea, connecting the Imperial Valley’s water quality concerns to the larger environmental challenges facing the Coachella Valley.

“When the Salton Sea starts to recede and the playa is exposed it contains those chemicals,” Ruiz said. “When you have the dust in the air, people breathe those chemicals.”

Funding remains another challenge. Officials say the resources currently available to operate cleanup equipment are not enough to cover the cost of running it.

The long-term goal is to address the source of the pollution before it reaches the New River and eventually the Salton Sea.

Officials did not provide an exact timeline for when a final agreement or additional cleanup work could begin.

Stay with News Channel 3 for more.

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How local youth programs work to keep kids safe as missing teen cases rise this summer

Gavin Nguyen

CATHEDRAL CITY, Calif. (KESQ) – Any time an alert pops up for a missing person, the community goes on high alert.

When kids and teenagers are involved, it becomes an even greater priority.

This summer, a number of teenagers in the Coachella Valley have been reported missing.

Earlier on Tuesday, the Riverside County Sheriff’s Office alerted the public to a missing 14-year-old girl in Palm Springs, Isabella Paola Rojas.

In late July, News Channel 3 also reported on a missing 17-year-old in Cathedral City. He was found safely.

Keeping kids engaged is one of the key ways to keep them off the streets and away from risky behaviors.

One of the programs doing that is the Boys and Girls Club of Cathedral City. Inside, on any given day, you can typically find dozens of teenagers and kids using the space to build connections, skills, and find themselves.

“Our goal is to help you find your gift,” said the club’s CEO, Scott Robinson. “And if you find your gift, you’re connected, you know, and the world is a pretty wonderful place.”

Whenever he hears the news of a missing juvenile, it hits hard. “It breaks my heart because there’s many different levels of where it could be, from mental illness, to just conflict within the family unit, [or] not having a safe place to have a mentor.”

According to the National Child Protection Task Force, more than 350,000 missing children are reported annually in the United States. More than 90% of those cases involve kids who are endangered runaways. Every child that is reported missing is at risk of being exploited, abused, or trafficked. That’s the reason why the Boys and Girls Club strives for prevention by surrounding the kids who frequent its facility with positive role models from a young age.

“What we try to do as a prevention model, catch, catch them at a younger age, help them find sense of self, build their self-esteem and give them a place, a safe place where they continue to learn and grow,” Robinson said.

He admitted, not every teen that comes through the club’s doors is able to be saved from choosing the wrong path. But, even then, he said his staff helps those children find a way forward to steer them back to the right path.

Many of the children there came from families that needed extra support. Robinson said roughly 60% are single-parent families who might not have the time to do homework with their kids or provide them with extracurricular activities.

It’s programs like the Boys and Girls Club that fill those gaps, and it was clear to see how much of a connection the staff built with the kids. From sharing friendly matches of ping pong to fist bumps and high-fives, the dozens of teens who showed up clearly wanted to be there.

“It makes me so proud because I know where they could be,” Robinson said with a smile. “They could be on the streets. We have all kinds of programs to prevent them from doing horrible stuff. And they’re here… they’re choosing to be here.”

For more information on the programs the Boys and Girls Club of Cathedral City provides, you can visit their website by clicking here.

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Man accused of bringing gun, tactical gear to Twentynine Palms schools pleads not guilty

Garrett Hottle

Update 8/18/26

RANCHO CUCAMONGA, Calif. (KESQ) – Robert Rosado was arraigned on Tuesday, where he pleaded not guilty to two counts of Possess Weapon/Etc On Or Within School Grounds.

Rosado is scheduled to return to court for a Pre-Preliminary Hearing on Aug. 21 in Joshua Tree.

As of Tuesday night, he remains in custody on $500,000 bail, according to jail records.

Original Report 8/17/26

JOSHUA TREE, Calif. (KESQ) – A man accused of repeatedly showing up at two Twentynine Palms school campuses armed and dressed in tactical gear was charged on Monday with two counts of possessing weapons on school property.

Robert Rosado, 29, of Twentynine Palms was booked on suspicion of bringing a firearm and other weapons onto school grounds and remains in custody on $30,000 bail, jail records show.

Rosado is set to be arraigned via video in Rancho Cucamonga on Tuesday, according to court records.

A photo obtained by News Channel 3 shows Rosado at the back of a vehicle in the pickup area of Twentynine Palms Elementary School two days before his arrest. It was taken by the parent who reported him to police, who asked not to be identified. The parent has picked up his own kids at the school for more than a decade, he told News Channel 3.

It was an early release day last Wednesday when the parent, walking out with his kids, noticed a man across the lot pulling something on over his shirt. His first thought, he said, was a jacket. In the desert. In August. Then he saw the rest: a ballistic vest, a duty belt, and what appeared to be a gun on the man’s hip.

The parent said he alerted a school staff member, who told him the man had shown up dressed the same way for days and figured he was law enforcement. Not satisfied, the parent said he called the Morongo Basin Station’s school resource deputy directly.

Investigators reviewed school surveillance video and identified Rosado, the department said. He was seen wearing a tactical-style ballistic vest, a law enforcement duty belt, a baton, pepper spray and a firearm, according to the department, which says he had worn the same equipment at both Twentynine Palms Elementary and Twentynine Palms Junior High School the day before.

Detectives obtained warrants to search the man’s Twentynine Palms home and for Rosado’s arrest, the department said. Before either could be served, the man returned to the junior high just after noon Thursday and tried to enter the campus while armed and in tactical gear, according to the department. Staff refused him entry, notified deputies and placed the school on lockdown. He left in a minivan.

Deputies used automated license plate reader technology to track the vehicle and arrested Rosado a short time later. Booking records list the arrest at the Morongo Unified School District office, a block from the junior high.

In the vehicle, deputies found items the department described as consistent with impersonating a law enforcement officer, including a load-bearing vest with an attached body camera, handcuffs, a taser, a badge and a less-lethal firearm.

When deputies served the search warrant at Rosado’s home, they found three children living there with his girlfriend, according to the department. Deputies described the home as extremely unsanitary, with dirt, debris and filth throughout and insects spread through the residence. County social workers responded, and a willful child endangerment investigation was opened.

The investigation is ongoing. Anyone with information is urged to contact the sheriff’s Morongo Basin Station at (760) 366-4175 or leave an anonymous tip with We-Tip at (844) 909-3006.

News Channel Three received the following statement from the Morongo Unified School District:

“The safety of our students and staff is our highest priority. We understand that news of this incident is concerning to our families and community. We want to reassure everyone that our schools take every report of a potential threat seriously. Our staff are trained to follow established safety procedures, and we will continue working closely with local law enforcement to maintain a safe and secure learning environment.

We would also like to remind our community that schools are weapon-free zones. Please help us protect our students and staff by adhering to all applicable laws and school safety policies. Thank you to our students, families, staff, law enforcement partners, and entire community for your continued support, cooperation, and commitment to keeping our schools safe.”

This story will be updated with additional info as it becomes available.

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Nine people displaced after fire in Indio Tuesday night

Jesus Reyes

INDIO, Calif. (KESQ) – Nine people are out of their home Tuesday night following a fire in Indio.

The fire was reported just before 9:10 p.m. on the 44700 block of Palm Street.

“Firefighters on-scene of a single-story single-family dwelling with heavy fire visible,” reads a post for CAL FIRE.

The fire was contained by 11 p.m., with crews remaining on scene for mop-up. No injuries were reported.

CAL FIRE officials said it was determined that the fire was in outside debris and power lines. Firefighters were able to keep it from spreading into the structure.

Eight adults and one child will be displaced due to power being shut off at the residence. They are being assisted by the American Red Cross Southern California Region.

The Imperial Irrigation District was also requested to the scene for assistance.

Stay with News Channel 3 for continuing updates.

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Traffic collision shuts down I-10 near Desert Center

Tommy Gallegos

DESERT CENTER, Calif. — A traffic collision on Interstate 10 near Desert Center sent one person to the hospital with critical injuries Friday afternoon after a vehicle caught fire and blocked all lanes of the freeway.

Cal Fire firefighters were dispatched at approximately 12:58 p.m. to westbound Interstate 10, east of the Red Cloud Road off-ramp. The crash involved a vehicle that caught fire, creating a complete blockage of the freeway.

Firefighters contained the vehicle fire at approximately 1:22 p.m.

TRAFFIC COLLISION – Rpt @ 12:58 p.m. Interstate 10 West / East of Red Cloud Road off-ramp in Desert Center. Firefighters are on-scene of a traffic collision with a vehicle on fire and is blocking all lanes. The fire was contained at 1:22 p.m. One patient sustained critical… pic.twitter.com/txPTYYLUWT

— CAL FIRE/Riverside County Fire Department (@CALFIRERRU) August 14, 2026

One patient sustained critical injuries and was transported by helicopter to a local hospital for further treatment. No other injuries were reported.

The incident occurred near Red Cloud Road, Exit 182, along I-10 in the Desert Center area.

Motorists traveling through the area should expect significant delays and use caution while emergency crews work at the scene. Additional details about the cause of the collision were not immediately available.

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Student Safety: What parents should know after alarming incidents in the community

Raymond Kalra

INDIO, Calif. (KESQ)- An alarming case involving a pastor who authorities say served at churches in Indio and Blythe is bringing renewed attention to child safety and the conversations parents can have with their children.

The Riverside County Sheriff’s Department says 41-year-old Lino Hernandez was arrested this week on suspicion of sexually assaulting a minor. Authorities believe there may be additional victims, and the investigation remains ongoing. On the same day, Cathedral City Police released info on an arrest involving a Cathedral City teacher accused of sexually abusing several students, who has now been ordered to stand trial.

News Channel 3 is working to learn more about what parents should watch for, how they can talk with their children about uncomfortable situations and what questions families should ask before involving children in churches, programs or other community organizations.

See my full story tonight at 5.

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GLP-1 scams: what to look out for

Kiera McKinney

PALM DESERT, CALIF. (KESQ)- GLP-1 medications have exploded in popularity as a tool for weight loss and diabetes management, but as more people search for access to these drugs, scammers are finding new ways to take advantage.

According to KFF (Kaiser Family Foundation), about one in eight adults in the United States is currently using, or has used, a GLP-1 drug for weight loss or other medical condition.

The Better Business Bureau says it has seen an increase in complaints involving online companies selling GLP-1 medications, with some patients saying they paid hundreds of dollars and never received the product.

See my full story tonight at 6.

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Sound bath offers local reset during national wellness month

Dakota Makinen

PALM DESERT, Calif. (KESQ) – August is National Wellness Month, and one local fitness studio is giving people a chance to slow down and reset with a sound bath.

The experience is happening tonight at 7 p.m. at LYV Fitness in Palm Desert, using sound and vibration to promote relaxation.

There are also other local wellness options and deals available throughout the Valley this summer.

The Marriott Master Key Club costs $30 and gives Coachella Valley residents 30% off eligible experiences at three area Marriott resorts through October 18.

Stay with News Channel 3 for the latest updates.

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