GOP consumer sentiment ‘starting to fade’ ahead of midterms, economist says
Semafor sat down with The Conference Board Chief Economist Dana Peterson on the sidelines of Kansas City Fed’s annual economic policy symposium in Jackson Hole, Wyo.
GOP consumer sentiment is "starting to fade" ahead of the midterm elections, according to The Conference Board Chief Economist Dana Peterson. The overall consumer confidence index has dropped to its lowest level since January, and economists had predicted it would remain higher. Peterson attributes this shift to a general downward optimism, citing expectations that inflation and interest rates will remain elevated.
She notes that Democrats are the least optimistic, but independents are moving with Republicans in a negative direction. Consumers have been citing issues such as oil and gas prices, food, and war and conflict on surveys.
Peterson predicts that Federal Reserve Governor Kevin Warsh would not support an interest-rate hike at the next meeting, citing the risk of more demand destruction leading companies to either cut prices or labor. She also expresses concerns that coordination with the Treasury Department's moves to bring down borrowing costs by buying US long-term debt might jeopardize the central bank's independence.
Peterson questions the division of authority over the economy between the Fed and the Treasury, stating that it's not clear who should have greater control. She also emphasizes the importance of the Fed operating independently, free from fiscal policy and politics.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
