On paper, things are looking pretty strong — record-low unemployment, solid GDP growth, and — perhaps most significantly — cooling inflation.
But that news hasn’t translated into high approval ratings for President Joe Biden. Right now it’s at 38%, which is why voters can expect to hear a lot about the economy tonight.
Daniel Hornung, one of President Biden’s economic advisers tells Scripps News tonight he’ll focus on jobs created and wage growth during his presidency.
"What you'll hear from the president at the State of the Union is first, just looking back at where we've been over these last three years, having come to office, facing really an economic and public health emergency," he said.
He also says President Biden will hone in on lowering prescription drug costs, eliminating junk fees and making sure corporations pay their fair share in taxes.
"The pandemic that disrupted all our lives, the war in Ukraine having a big impact on gas prices, supply chain disruptions on other prices. So, you know, we have all been through a lot," he said.
President Biden’s address will no doubt be an effort to bridge the gap between positive economic indicators and how consumers feel.
The latest Gallup poll shows just 38% of Americans approve of his handling of the economy.
"I can't feel 3.2% GDP growth, right? And if I don't have a job or if I don't feel great about the prospects of a job or advancement in my career, I'm not going to feel that unemployment rate at 3.7% or the nonfarm payrolls of 353,000. It really depends on who you are," said Anna Rathbun, CIO of CBIZ Investment Advisory Services.
Powell tells lawmakers interest rate cuts are likely this year
A rate reduction would likely lead, over time, to lower rates for mortgages, auto loans, credit cards and many business loans.
