Claman Countdown panelists Kenny Porcari and Andy Brenner react to the Federal Reserve's press conference.
American voters keep the economy in mind when voting. president-elect trump He returned to the White House after defeating Vice President Kamala Harris.
economic problems are often important concerns for voters, and the 2024 election was no exception. The Fox News Voter Analysis (FNVA), conducted in conjunction with The Associated Press, found that 39% of respondents rated the economy and jobs as the most important issue facing the country, ahead of immigration (20%), and abortion (20%). 11%).
Additionally, FNVA found that a combined 63% of voters rate the economic situation as “not very good” or “poor,” compared to 37% who say it is “very good” or “good.” revealed something. This is reflected in voters' evaluation of their family's financial situation, with only 13% saying things are going well, while 56% say things are going well. 31% said they are going backwards.
These findings come after the U.S. economy has experienced the most significant inflation cycle in 40 years over the past few years, with prices up about 20% compared to four years ago and efforts to keep interest rates down. Interest rates rose to their highest level since 2001. pace of price increase.
Why are consumers pessimistic about the economy even though inflation is falling?
The economy and jobs were the most important issues in the election, according to Fox News Voter Analysis. (Michael Nagle/Bloomberg via Getty Images/Getty Images)
Although inflation has subsided and the labor market is relatively stable, the impact of rapidly rising prices on household budgets has personal finances And when it came time to vote, the broader economy was front and center.
Troy McGuire, co-founder of Fintech.TV, told FOX Business that fiscal stress was the main reason the economy became a major issue in the election, adding, “In one word: inflation. The incompetence of the Biden-Harris administration is inflation.” inflation rate Interest rates have been lowered and people's paychecks are being squeezed in real terms as interest rates remain high. ”
McGuire added: “President Trump really nailed the message that immigration is also a factor and that immigration is bad for the economy because of the resources they consume.” “Bottom line is, when people's pockets hurt, people will want change. President Trump is also a famous commodity, whether half the country likes it or not, and that helped him. They remembered his successful economic policies and felt that with him at the helm, the economy would be headed in the right direction again. ”
How do you compare consumer prices under the Biden administration to those under the Trump administration four years ago?
Consumers are facing prices that are about 20% higher than they were in the last four years following a historic inflation cycle. (Photo by Spencer Pratt/Getty Images/Getty Images)
Ted Jenkin, a business consultant and co-founder of oXYGen Financial, said households are facing challenges due to the heavy burden of credit card debt. student loan borrower It reflects the economic challenges faced by households.
“Americans carry more than $1.1 trillion in money, so… credit card debt “The economy was the biggest issue in the election, because 50% of student loan borrowers have not yet made their repayments, meaning many American families will not be able to pay off their monthly obligations,” Jenkin told FOX Business. “It's becoming increasingly difficult,” he said. So many people are falling behind financially. ”
El-Erian: Interest rates and inflation are moving in the right direction, but falling prices are 'not going to happen'
Trump's victory came as voters became more anxious about their personal finances. (Michael Nagle/Bloomberg via Getty Images/Getty Images)
Grant Cardone, CEO of Cardone Capital, said in an interview with FOX Business that while inflation is a factor, the lack of income growth outpacing inflation is a more important factor.
“Inflation is a nice specter to blame for everything, but the answer to inflation is growth, and we don't have growth,” Cardone said. “You simply can't make products and services more expensive if incomes aren't going to increase. For people to do well, the prices of products and services have to go up as well.”
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