Why GDP Grew While Consumer Sentiment Tanked in May 2026

The US economy just put up a 2 percent annualized real GDP growth number, but consumer sentiment hit a fresh record low in May 2026. Lucas and Luna unpick the disconnect: how can output be expanding while households feel worse than they did during the pandemic? They walk through the two key forces at play — wage growth that's running hot in blue-collar sectors versus persistent inflation in services and rent — and flag the Iran war's effect on energy prices as the wildcard that's spooking consumers. Plus, a look at the S&P 500 sitting near 7,473 and what the stock market is pricing in that the sentiment surveys aren't. Specific data points include the 4.3 percent unemployment rate, the 3.64 effective fed funds rate, and the 10-year breakeven inflation rate at 2.40 percent. #ConsumerSentiment #GDP #Inflation #EconomicDisconnect #May2026 #IranWar #EnergyPrices #BlueCollarWages #FedPolicy #StockMarket #SP500 #TreasuryYields #BreakevenInflation #Economics #FexingoBusiness #BusinessPodcast #Macro #EconomicForecast Keep every episode free: buymeacoffee.com/fexingo