On Tuesday, Treasury Secretary Janet Yellen assured Americans that their personal finances were strong, despite polls showing the contrary. In an interview with CNBC, Yellen acknowledged that low-income families may be struggling, but insisted that overall, household finances and the economy were "quite strong."
Yellen's statements stand in contrast to recent poll results, which show that most Americans do not believe the economy has improved under President Joe Biden's administration. A compilation of polls by the Brookings Institution in March revealed that only 26% of Americans saw economic conditions as "excellent or good," while more than half (51%) rated conditions as "poor."
In an Economist/YouGov survey, published in late March, only 21% of voters believed that the economy was improving, while 52% believed it was getting worse. The poll also asked voters to directly compare Biden's economy to former President Donald Trump's, with 38% rating Biden's economy as good, compared to 65% who said the same about Trump's economy.
.@SecYellen tells Americans that their household finances are “quite strong” pic.twitter.com/gV1ns38B4U
— Tom Elliott (@tomselliott) April 9, 2024
Yellen's optimistic view of the economy also clashes with the sentiments expressed by most Americans in a March poll by CBS News. When voters were asked to directly compare Biden's economy to Trump's, only 38% rated Biden's economy as good, while 65% said Trump's economy was good.
While Yellen acknowledged that low-income families may be exhausting their savings, she maintained that overall, households were in good financial shape. This statement is in contrast to a poll by Bankrate in February, which found that nearly half (45%) of Americans said their savings were lower than they were before the pandemic. The same poll also revealed that 20% of Americans had to tap into their retirement savings due to financial difficulties.
Yellen also expressed confidence in the economy's stability, stating that "we've got very strong domestic demand." However, a poll by Bankrate in January found that nearly half (48%) of Americans were concerned about losing their job or having their work hours reduced. This anxiety was even more prevalent among lower-income households.
Many Americans' skepticism about the state of the economy may be linked to the ongoing rise in prices. Inflation has been a growing concern, with a poll by Civic Science in March revealing that 73% of Americans were worried about rising inflation affecting their financial stability.
Yellen did address concerns about inflation, stating that she believed it would "continue to come down." However, a survey by Morning Consult in April found that only 12% of Americans believed that the economy had improved under Biden's administration, while 26% believed it had gotten worse.
The discrepancy between Yellen's assurances and public opinion may be rooted in the difference between the performance of the stock market and the lived experiences of most Americans. While the stock market has performed well, with the S&P 500 reaching record highs, a poll by Credit Karma in March found that only 29% of Americans were invested in the stock market.