Axios Jul 15
Trump's economic agenda isn't getting people to spend money
Despite optimism in the financial markets, people are spending less, per Wall Street Journal lead story by Ben Leubsdorf:
- "Stocks hit records [yesterday] and big U.S. banks reported stronger-than-expected earnings. But new government data showed consumers pulled back spending at mid-year even as markets rallied. Households also grew less optimistic about the future and inflation on consumer purchases softened."
- "Trump has set out an agenda to push economic growth well beyond the roughly 2% pace that has prevailed since the recession ended in 2009, but so far there is little sign of a real breakout happening."
- Be smart: "Markets—as they sometimes do— took bad economic news as good investment news."
- Why it matters: "The president has suggested a number of policies to spur growth, including a tax overhaul and major infrastructure spending, but those aren't yet close to reality."