Hassett says consumer sentiment is really political sentiment as it sinks

The Dow Jones was at an all-time high, but Kevin Hassett said consumer sentiment had fallen to an all-time low and that the gap was political as much as economic. Speaking on Face the Nation with Margaret Brennan from the White House North Lawn in Washington, D.C., the White House National Economic Council director said, "we should stop calling it consumer sentiment and start calling it political sentiment, because it's really a political variable."

Hassett pointed to the University of Michigan’s Survey of Consumers, which breaks results out by party, to argue that the weakness was concentrated among Democrats and independents. He said Democratic readings had fallen to about the lowest level ever, while Republicans had held roughly steady, and he suggested the overlap between independents and Democrats indicated a sample tilted Democratic. He contrasted that with The Conference Board’s confidence survey, which he called "more scientific."

The Michigan survey’s final May 2026 reading tells a different but related story: sentiment fell to 44.8 from 49.8 in April, slipping just below the previous historical trough set in June 2022. The survey found that 57% of consumers spontaneously cited high prices as eroding their personal finances, up from 50% the month before. Lower-income households and people without college degrees showed especially sharp declines, underscoring that the pain was not evenly distributed across the country.

The report also showed that independents and Republicans both fell to their lowest readings of the current administration, while Democrats were little changed. Inflation fears remained elevated too: year-ahead expectations rose to 4.8%, and long-run inflation expectations climbed to 3.9%. Hassett said other data still pointed to strength, citing GDPNow running above 4% and initial jobless claims at their lowest level since the 1960s.

The political fight over consumer psychology comes after another uneasy week for households. A May 3 Face the Nation episode framed the backdrop with gas prices skyrocketing and Spirit Airlines shutting down, a reminder that many Americans are still feeling the effects of higher costs even as Wall Street hits record highs. The latest sentiment reading suggests the question is not whether households are worried, but whether their gloom is driven more by prices, politics, or both.