Our chart of the week looks at the “Misery Index” leading up to past U.S. presidential elections. This index combines the inflation and unemployment rates, providing a quick sense of how the economy feels to everyday people. Despite strong economic data, consumer sentiment readings continue to be well below pre-COVID levels, mainly due to the impact of higher price levels from the recent inflationary spike. An objective view of unemployment and inflation statistics leading up to this year’s election shows the misery index tied with 2016 as the lowest on record. With inflation largely under control, the Federal Reserve has begun cutting interest rates to keep the labor market strong and unemployment at these low levels.

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