May 9, 2023 - Economy & Business
Americans' confidence in Fed chair Powell depends on who's president
How confident are Americans in Federal Reserve chair Jerome Powell? That appears to depend on who's sitting in the White House.
Driving the news: Confidence in Powell declined this year from 2022 amid stubborn inflation and a banking crisis — but under the hood, partisanship plays a big role, according to a new survey from Gallup out Tuesday morning.
Zoom in: Since Powell was nominated by Republican President Donald Trump, and renominated by Democratic President Joe Biden, you've got the conditions for essentially a natural experiment on how partisanship colors Americans' views on the economy.
- From 2018 to 2020, when Trump was president, 62% of Republicans on average were confident Powell would do the right thing for the economy. Now, that number is 21%.
- Democrats' confidence in Powell went from 48%, on average, under Trump, to 60% in this most recent Gallup survey conducted in April.
The bottom line: "It's the politics, stupid," seems to have replaced the old James Carville line, at least for now.