"Consumer Sentiment Soars: Americans Optimistic About Economy in 2022"

American consumer sentiment about the economy is at its highest level since July 2021, with Democrats and Republicans expressing their most favorable readings since the summer of 2021. The University of Michigan survey and the New York Federal Reserve's survey both show an upward trend in sentiment, driven by the ongoing strength in the labor market and easing concerns about inflation. However, views on the economy remain deeply polarized based on political party, and elements of the economy, such as inflation and labor force participation, remain fundamentally changed compared to the pre-pandemic period.