Consumer Sentiment and Inflation Concerns in the U.S.

American consumer sentiment takes a hit due to concerns over persistent inflation and the economy's outlook. University of Michigan's consumer sentiment index drops to 69.1 in May, the lowest in five months. Expectations for inflation rise to 3.3 percent over the next year. Concerns about the labor market and higher interest rates intensify pessimism among consumers.

Inflation and Consumer Sentiment in the Biden Economy

Inflation, not partisanship, is the main reason behind depressed consumer sentiment in the Biden economy. The public dissatisfaction is due to rising inflation and the expectation that it will not decrease soon, leading to a negative impact on real wages. The Biden administration's attempt to spin the situation positively has not been successful so far.

Impact of Rising Inflation on U.S. Economy

The University of Michigan's index of consumer sentiment fell in April, reflecting concerns about rising inflation. Inflation has increased to 4.6% annually, impacting consumer expectations.

Consumer sentiment and political fundraising

Consumer sentiment in March rose to a 32-month high as Americans expressed confidence in easing inflation and reducing financial strain. A fundraiser for President Joe Biden in New York City raised $25 million, setting a new record for a single political event.