‘It’s the Economy, Stupid’ — and in This Case, the ‘Stupid’ One Is Fed Chairman Jerome Powell

Economic malaise continues to grip the country. Affordability, or the lack thereof, is the main cause of this malaise.

Republicans now hold just a one-point lead over Democrats in a survey of which party is better at handling the economy. This could boost Democrat hopes for the 2026 midterm elections, but unfortunately, Republican leads on immigration and crime are almost insurmountable.

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One poll found 67 percent of respondents were living from paycheck to paycheck and taking on debt to stay afloat. The problem is more pronounced for younger people, while those of retirement age — 65 and older — seem to be faring much better.

If you recall the 1992 presidential election (if you were even alive or old enough to remember), Bill Clinton won by focusing on the phrase, “It’s the economy, stupid,” devised by advisor James Carville.

Now, three decades-plus later, it’s still the economy, but in this go-round, the responsible person — and institution he chairs — is Fed Chairman Jerome Powell, In his hatred for Donald Trump, Powelll has steadfastly refused to lower interest rates. Finally, this month he relented on a whopping quarter-point drop.

If you recall, during the 2024 presidential campaign, Powell had no problem lowering rates by 50 basis points (half a percentage point), followed by a quarter-point drop — all in hopes of keeping Trump from office and electing Kamala Harris.

Fortunately, Powell’s term as chairman ends in May 2026, giving Trump time to appoint someone more market-oriented in hopes of righting the economic ship ahead of the November elections.