American households, battered with two years of negative real wage growth and observing a flurry of news headlines about regional bank failures and increasing recession risk, are losing faith in Federal Reserve Chair Jerome Powell’s ability to ‘do the right thing for the US economy.’ The skepticism is driven by their increasing belief that the economy might be headed for turmoil.
A new Gallup poll published Tuesday shows only 36% of respondents had a “great deal” or “fair amount” of confidence in Powell to do the right thing for the economy – the lowest rating in his six years as the captain of the world’s largest economy (also the lowest rating of any Fed Chair). This figure is below Yellen’s 37% in 2014 and Ben Bernanke’s 39% in 2012. Someone grab Powell a liferaft because he’s sinking quickly in the eyes of the American people.
Powell’s confidence with respondents peaked at 58% when he unleashed trillions of dollars in stimulus checks for Americans. His confidence rating has since tumbled precipitously as the free money expired more than a year ago and inflation emerged, causing tremendous pain for households.
The loss of confidence isn’t limited to Powell. Respondents increasingly doubt President Biden’s and the Democratic lawmakers’ ability to conduct the best policy for a thriving economy. In comparison, Republicans recorded the smallest change in confidence lost in percentage terms.
These figures come ahead of a presidential election cycle. Biden’s confidence of 35% is the lowest of any president since George W. Bush received 34% during the 2008 meltdown.
Americans are infuriated by US economic leaders for sparking 24 months of negative real wage growth through money printing that has paralyzed low/medium-tier households.
Gallup’s survey also found Democratic congressional leaders’ 34% confidence rating is the lowest on record.
And by political party, Democrats expressed high confidence in their leaders, with the lowest ratings for Republican lawmakers. Meanwhile, Republicans are confident in the Republican leaders in Congress but no one else.
“The pattern is fairly typical, with supporters of the president’s party more confident in the president, Fed chair and treasury secretary. This is the case even for Fed chairs who — like Powell, Yellen, Bernanke and Alan Greenspan — have served presidents from both major parties,” Gallup said.
Here’s Gallup’s bottom line:
“Historically, Americans’ confidence in their leaders on economic matters has risen and fallen depending on the health of the economy. As such, if the economy falls into a recession later this year, confidence in political leaders may erode further. However, if the economy improves and avoids a recession, Americans’ confidence may be restored.”
A recession is certainly not what the Biden administration needs before or entering 2024… but being able to blame Powell would certainly help… and don’t forget, Biden claims he has ‘created more jobs’…
This is what happens when you invest in America.
We have more work to do – but this is real progress. pic.twitter.com/Pur91mu3Pf
— President Biden (@POTUS) May 5, 2023
Don’t get us started on the ‘fact-checks’ on that pure propaganda.
