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In 2025, it relies upon. Notably if you’re a Republican/Lean Republic — then it’s nearly zero…
Right here’s the connection of various teams disaggregated by partisan affiliation, towards information sentiment (lexographically outlined from newspapers), as measured by the SF Fed.
Determine 1: U.Mich Sentiment – Democratic/Democratic leaning (blue, left scale), and SF Fed Information Sentiment index (tan, proper scale). October Information Sentiment is thru 10/26. Supply: U.Michigan, and SF Fed.
Determine 2: U.Mich Sentiment – Impartial (chartreuse, left scale), and SF Fed Information Sentiment index (tan, proper scale). October Information Sentiment is thru 10/26. Supply: U.Michigan, and SF Fed.
Determine 3: U.Mich Sentiment – Republican/Republican leaning (crimson, left scale), and SF Fed Information Sentiment index (tan, proper scale). October Information Sentiment is thru 10/26. Supply: U.Michigan, and SF Fed.
The sensitivity of sentiment to information sentiment is 0.88 for Democratic/Lean Democratic, 0.66 for independents (each coefficients statistically important at standard ranges, and adj-R2 of 0.70 and 0.82, respectively). For Republican/Lean Republican, the coefficient is -17, and isn’t statistically important. The adj-R2 is 0.02. In different phrases, measured information sentiment is unrelated to Republican/Lean Republican financial sentiment.
One attention-grabbing side of the outcomes is that Republican/Lean Republican expectations are positively related to information sentiment, whereas present situations are negatively related (the more severe the information, the higher the evaluation of present situations). This isn’t true for Democratic/Lean Democratic or Independents. Right here’s a scatterplot.
Determine 4: U.Mich Present situations – Republican/Republican leaning vs. SF Fed Information Sentiment index, 2025M01-2025M10. Supply: U.Michigan, and SF Fed.
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