Home equity could be a $35 trillion lifeline for Americans if recession strikes. Here's what to know.

Getty Images; Jenny Chang-Rodriguez/BI

• Consumer sentiment is declining amid macroeconomic uncertainty.
• Concerns are rising about the health of the US economy, but homeowners could boost spending.
• Tapping just a fraction of available home equity could be a massive stimulant, one analyst says.

Consumer confidence is teetering, but if a recession ultimately strikes, US homeowners are holding onto an under-the-radar lifeline.

Household consumption has been...