The Blubber

Americans are sour on Biden's handling of the economy. The media may be to blame, per NPR.

Public sentiment toward Biden's economic management has soured, and some attribute this shift to media coverage. Despite employment staying below 4% for an exceptional two-year period and wage increases consistently outpacing inflation, a recent study from scholars at the Brookings Institution highlights a noticeable increase in negative news coverage about the economy over the past six years. The study also indicates a significant rise in the sheer volume of negative coverage in the last three years, coinciding with Biden's presidency.

However, recent economic indicators tell a different story. December saw U.S. retail sales surpassing expectations, driven by increased motor vehicle and online purchases. This positive report from the Commerce Department prompted economists to revise their growth estimates for the fourth quarter, challenging financial market expectations of a Federal Reserve interest rate cut in March. Earlier in the month, strong employment and wage gains, along with a rise in consumer prices, were reported. Fed Governor Christopher Waller described the economy as "doing well," providing the central bank with the flexibility to proceed cautiously with monetary policy.

Despite these positive signs, the study suggests that the tone and volume of negative news coverage may contribute to the public's pessimism about the economy. Fed officials, however, view the economy as well-balanced, offering room for a few interest rate cuts in 2024. Retail sales, a key economic indicator, rose by 0.6% in December, exceeding the forecasted 0.4%. Although challenges in adjusting data for seasonal fluctuations and pandemic-related distortions may have influenced the results, the year-on-year increase in December retail sales was 5.6%. The study suggests that consumers may have started their holiday shopping early to