Dismissing Economic Morale As "Fake" Has Real Consequences

If the main criticism of the Biden administration was its dismissal of Americans’ negative perceptions of the economy—insisting that strong data contradicted those concerns—what happens when the next administration ignores both negative sentiment and negative data?

Consumer surveys reflect worsening sentiment and a darker outlook.

Hamza Shaban explored this question in an analysis for Yahoo Finance.

The way the current White House discusses the economy is reminiscent of a “funhouse mirror” version of the so-called “vibecession” of the past few years. Under the previous administration, public sentiment about the economy was worse than the data suggested.

Now, both economic indicators and consumer confidence are signaling trouble—but Trump administration officials have downplayed both.

“Our administration and the American people are focused on the real economy, not fake news polling or ‘vibecessions,’” Treasury Secretary Scott Bessent wrote in a post on X.

Bessent isn’t entirely wrong—economic data matters.

But public perception also plays a crucial role, as Federal Reserve Chairman Jerome Powell has emphasized. Consumer sentiment influences spending and hiring decisions, which, in turn, impact economic growth.

“We’ve been in office for eight weeks,” Bessent said Sunday in an interview on NBC’s Meet the Press. 

“We are implementing policies that will ease the affordability crisis, moderate inflation, and, as we set our course, I am confident that the American people will come around—even if some of the media narrative doesn’t.”

However, the warning signs aren’t just coming from media outlets. It’s corporations raising concerns. It’s the stock market falling into correction territory.

It’s hard economic data pointing to weaker growth and higher inflation. And it’s consumer surveys reflecting worsening sentiment and a darker outlook. This isn’t academic nitpicking—it’s financial reality.

The administration insists its economic agenda is on track, promising long-term benefits.

And while many may give the White House the benefit of the doubt in its first 100 days, Bessent and the Trump administration risk ignoring both sentiment and economic indicators at their own peril.

Or, more accurately, at everyone’s peril.