Trump's economic tightrope messaging of strong economy, high prices
President Trump's economic officials acknowledge that a strong economy alone will not persuade Americans that they are better off under this president. Why it matters: The administration is trying to avoid what it sees as a Biden-era mistake: touting strong economic data while Americans are still reeling from a historic run-up in prices to which Trump's policies have contributed. It is a…
President Trump's administration is grappling with the challenge of promoting a strong economy without dismissing Americans' concerns about rising living costs. White House economist Kevin Hassett said that dismissing the economy's strength due to higher prices would be insensitive, while Treasury Secretary Stephanie Taylor acknowledged the cumulative impact of inflation on Americans' purchasing power.
The administration is trying to avoid the mistake of the Biden era, which was reportedly telling people how good they had it despite high inflation, particularly energy prices driven by the Middle East conflict. The administration still wants to claim credit for the robust economic growth on paper, even as the headline indicators hide the financial strain felt by many.
However, the bond market's rise in long-term interest rates and mortgage rates above 7% complicates the administration's affordability efforts.
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