THE BASIS POINT

Inflation & debt ceiling kills confidence in Fed, Treasury, Congress, White House (POLL)

 
 

Raising the debt ceiling should be straightforward: fund the government or everything stops, including social security, military, etc.

But it’s turned into a partisan charade designed to rattle confidence in the ruling party, and this playbook is working.

A Gallup poll shows only 34-38% of Americans have confidence in the Fed, Treasury, White House, and Congress on economic issues.

For the Fed, it doesn’t help they also have a thankless job of raising rates to bring inflationary prices down.

This concept is understandably hard for most to grasp, let alone respect for the 2 year trajectory it’ll take — and we’re only in month 14 of Fed actions to squash inflation.

Here’s a quick recap of Fed hikes and inflation.

Below is a link to all the Gallup charts on this topic, but above I’m showing a Bloomberg chart specific to Fed chair approval ratings.

It’s a great chart, but remember: Powell is the only Fed chair shown who’s had to deal with inflation. To get close to what Powell is dealing with, you’d have to go back to the early 1980s and show Paul Volcker.

Volcker was equally unpopular until long after his tenure, then he was lauded for decades as the great inflation slayer.

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Reference:

POLL & CHARTS:Americans Lack Confidence in Economic Leaders

 

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