Consumer sentiment no longer an accurate predictor

By Dorothy Gambrell and Laura Bliss – Bloomberg

The way Americans feel about the economy is now largely determined by party affiliation. During Donald Trump’s administration, consumer sentiment plunged among Democrats and surged among Republicans. When Joe Biden was elected, opinions reversed virtually overnight, despite little empirical change in the economy. This partisan split far exceeds differences by income, age and education, and it persists despite historic lows in unemployment and easing inflation.