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Why the Fed Ignores Record-Low Consumer Sentiment
Season 1
Episode 16
Published 1 month, 1 week ago
Description
Consumer sentiment just hit an all-time low in May 2026, yet the Federal Reserve is holding rates steady at 3.64 percent. Lucas and Luna unpack the disconnect: why the Fed focuses on hard data like core PCE and wage growth rather than sentiment surveys. They examine how monetary policy works through financial conditions and the real economy, and why the Fed can afford to wait. Plus, an update on small caps outperforming and the inverted yield curve's message. A concise look at why central bankers ignore how we feel and watch what we spend.