EPU And News Sentiment Since The War

Menzie Chinn
By Menzie Chinn of Econbrowser
Professor of Public Affairs and Economics at the University of Wisconsin •

Economic Policy Uncertainty surged while news sentiment plummeted following the 2025 presidential transition.

depositphotos_31420817-stock-photo-3d-graph-diagram-chart.jpg
Source: DepositPhotos

For EPU through yesterday, news sentiment through 5/18.

Figure 1: Shapiro-Sudhof-Wilson News Sentiment (blue, left scale), Economic Policy Uncertainty (light red, right scale), 7-day centered moving average (bold red, right scale). Source: SF Fed, policyuncertainty.com.

The News Sentiment Index has arguably been lower after 1/20/2025 than before, while EPU has been higher (simple OLS each index on Trump dummy).

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