The American public’s outlook on the economy is showing signs of improvement, with a decline in inflation and positive labor market conditions. The shift in consumer sentiment could have significant implications for the upcoming elections. What Happened: The Wall Street Journal reported on Friday that Americans are feeling more optimistic about the economy despite persistent inflation and lingering effects of the pandemic. The Federal Reserve’s indication that interest-rate hikes are likely over, coupled with a strong labor market, has contributed to this change in sentiment. According to a re…