Consumer Sentiment Hits Record Low as Iran War Drives Inflation Fears

The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy · May 22, 2026 · 8m · transcript

Lucas and Luna break down the stunning May consumer sentiment reading — a record low that caught even the most bearish economists off guard. They connect the dots to the Iran war's impact on energy prices, the bond market's inflation expectations, and what this means for new Fed chair Kevin Warsh's first policy decision. With the ten-year Treasury yield at 4.57 percent and the breakeven inflation rate slipping to 2.39 percent, the hosts debate whether the fear is already priced in or if the worst is yet to come for the American consumer.

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