PolitiFact | Inflation and high interest rates are blotting out every other metric for the average American.
Voters are giving Donald Trump — who’s seeking to return to the White House — more love on the economy than they’re giving Biden. In a late February-early March, almost two-thirds of respondents nationally said the economy was good under Trump, while 39% said the same of today’s economy under Biden.It seems inflation and high interest rates are blotting out every other metric for the average American, combined with self-reinforcing doom loops of media coverage and partisan biases.
The government’s primary cure for inflation is raising interest rates, which is causing a different kind of consumer heartburn.in reducing inflation — have also sent mortgage and credit card rates higher, squeezing borrowers and homebuyers, especially those who are entering the housing market for the first time.
The resumption of federal student loan payments in late 2023 might also be contributing to some Americans feeling less well-off, economists said. “Because people rely more on news to understand the national economy than their local economy or their personal finances, this provides some evidence that negative news sentiment plays a role,” Sojourner told PolitiFact.