Is Reality Finally Biting?

Created
Sun, 21/01/2024 - 07:30
Updated
Sun, 21/01/2024 - 07:30
It should be good news for Biden. Generally presidents benefit from good economic “vibes.” But who knows? He’s old so they may just hate him no matter the reality. It appears Americans are finally feeling better about the economy. Consumer sentiment, a window into the nation’s financial mood, jumped 13 percent in January to its highest level since mid-2021, reflecting optimism that inflation is easing and incomes are rising, according to a closely watched survey by the University of Michigan. Since November, consumer sentiment has risen 29 percent, marking the largest two-month increase in more than 30 years. Gas prices, often a key driver of sentiment, have fallen 40 percent since June 2022, to just over $3 a gallon. Weekly jobless claims are at their lowest level in more than a year. Sales of cars, clothing and sporting goods all picked up during the holidays, as consumers felt confident enough to keep spending. Meanwhile, the stock market is surging to new records, with the S&P 500 closing at an all-time high on Friday. Many are hopeful, too, that interest rates have peaked and the Federal Reserve may begin to cut them this year, which would make it cheaper to borrow for a range of items, including cars and homes. “We’re seeing a continuation of the surge in sentiment we saw at the end of last year,” said Joanne W. Hsu, an economist at the University of Michigan and director of its consumer surveys. “If anyone was wondering, ‘Was December a fluke?,’ it…