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Claudia Sahm highlights a sharp drop in consumer sentiment, noting it has reached all-time lows. She also points to rising inflation expectations, which could have significant implications for the economy and monetary policy going forward.
Sahm references the Michigan Survey as a key indicator but raises concerns about whether it may be increasingly politicized. She expresses disagreement with the idea but acknowledges her worries about the survey's current reliability.
Sahm has previously commented on Jay Powell's time as Fed Chair, pointing to the challenge of balancing inflation and jobs after the pandemic here. She also discussed Powell's communication during the pandemic and his defense of Federal Reserve independence in another interview. These observations come as Sahm continues to monitor economic indicators and policy signals.