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This episode provide an overview of US consumer spending and the growing disconnect between macroeconomic strength and household sentiment since the COVID-19 pandemic. Several reports highlight the depletion of pandemic-era excess savings by March 2024, yet overall consumer spending remains robust, increasingly driven by wealthier households benefiting from the "wealth effect" of rising asset prices and the so-called "K-shaped" economic recovery. Although high-interest credit card debt is rising sharply, some analysts argue that, when adjusted for inflation, it does not necessarily signal widespread financial hardship but rather reflects a return to pre-pandemic consumption habits, especially in services spending. Contrarily, data shows consumer sentiment remains near historic lows despite strong economic indicators like low unemployment and GDP growth, a paradox attributed to factors such as the lingering negative impact of inflation, heightened political bias in surveys, and increasingly negative media coverage of economic news.

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