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President Donald Trump and the Federal Reserve chair he wants to replace have managed to agree on one thing: The US economy is better than Americans think it is.
The president lamented again Wednesday that “I don’t think people get … the economic boom that’s taking place.”
A few hours later, Jerome Powell told reporters “the economy has once again surprised us with its strength” after policymakers opted to leave interest rates alone.
“The consumer is filling out surveys that sound really negative — and then spending,” Powell said. “There’s been a disconnect for some time.”
Don’t expect Democrats to chime in: Washington Rep. DelBene, the chair of the House campaign arm, said the same day that “when [Republicans] talk about [how] the economy’s strong, they’re not connecting with the lived experience that people are feeling on the ground.”
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Powell did note that consumers’ spending is “not even across income categories.” He also added that while consumers are spending, they’re simultaneously “looking to economize: They’re trading down brands, and they’re buying less.”
“They’re still consuming, but they’re feeling it, I would say more broadly, on affordability,” Powell said. “We take that very seriously … because one of our jobs is price stability. And the best thing we can do for people who are feeling that squeeze is to keep inflation under control.”