Trump administration billionaire Howard Lutnick says the American economy is in “great” shape and that “nothing bad is happening,” even as voters tell pollsters the cost of living feels like the worst it’s ever been.
Speaking on CNBC on Thursday, Lutnick, the billionaire businessman who now serves as Trump’s commerce secretary, brushed aside worries about rising costs and slowing growth and turned his fire on Federal Reserve Chair Jerome Powell for not slashing interest rates faster.
“These people are too afraid,” said Lutnick, who Forbes estimates to have a personal wealth of $3.2 billion before continuing: “J. Powell is too late. But maybe he should be called ‘too afraid’ too afraid to lead the greatest $30 trillion economy in the world. We should be leading with our front foot. Instead, we’re always leaning back as if something bad is happening. We are doing great. Nothing bad is happening. Greatness is happening.”
Lutnick’s pep talk came just one day after the Fed cut its benchmark interest rate by a quarter of a percentage point, its third cut this year in an effort to revive a sluggish labor market. While the move marked another attempt to juice growth, it also highlighted how delicate the moment is, with central bankers trying to balance stubborn inflation and signs of cooling hiring.
The administration has been pushing the idea that the economy is booming, that Trump’s policies are working, and that any gloom is exaggerated by the media and his opponents.
Outside the West Wing bubble, the picture looks very different as a new AP NORC poll released Thursday shows Trump’s economic message is falling flat. Just 31 percent of respondents said they have a positive view of Trump’s economic stewardship, the lowest rating on the economy ever recorded during both of his stints at the White House and a nine point drop from March.
Those numbers arrive as millions of Americans report feeling trapped by cost of living pressures. Rents remain high and food prices are still elevated compared with before the pandemic. Interest payments on credit cards and car loans have climbed after years of tighter monetary policy. For families living paycheck to paycheck, the idea that “nothing bad is happening” from a billionaire will feel insulting.
Democrats will likely use Lutnick’s remarks as a campaign gift to cast Trump’s inner circle is out of touch with everyday reality. The polls have shown that voters are already rejecting the rosy narrative coming out of the administration, and these comments will haunt Republicans in key districts next year.
Trump has gone on the attack in reaction to the polls and his allies are following suit. He has blamed the Biden administration for the current cost of living crisis but the polls are indicating even his own base is not buying the Democratic Hoax spin.
The outlook heading into the midterms is looking like hell for the GOP. If the AP NORC numbers hold, Republicans will be defending the House and Senate with a president whose overall economic rating is underwater.
