The Power of Government Intervention: How $10 Trillion Worth of Stimulus Offset a Drop in Consumer Sentiment

Former Global Chief Economist for JPMorgan Chase & PH.D. in Economics

The University of Michigan Consumer Sentiment Index plunged in June 2022 to 50.0.  That was the lowest sentiment reading observed in any U.S. recession dating back to 1978, the start of our data series on consumer sentiment.  Surprisingly, (real) consumer spending averaged a respectable +2.0% annualized growth rate in Q2 2022. The University of Michiga…