The Biden administration can say what it wants about the economy. More knowledgeable minds however will level with the public. The Breitbart Economics Editor John Carney, Fox Business host Larry Kudlow, Kevin O’Leary of O’Leary Ventures and Trump’s former Chairman of the Council of Economic Advisers Kevin Hassett discussed this recently. A rule change moves information timing.
Breitbart noted the timing
The rule change allows for the administration to comment on financial news only 30 minutes after release. Carney explained in Breitbart,
“Faced with polls showing that the public strongly disapproves of President Joe Biden’s management of economic issues, the White House is changing the rules to give them a new advantage when it comes to spinning economic data in a more favorable light. Instead of the one-hour waiting period that has been in place since the Reagan years, administration officials will be able to weigh in on important economic releases after just half an hour. The change will allow White House officials to comment on economic data released at 8:30 in the morning at 9:00, prior to the opening of the stock market. The risk is that officials would condition the market’s reaction. Important, often market moving data, are typically released at 8:30 a.m., including the monthly jobs and inflation reports.”
Kudlow talked to Hassett, “The Bidens are so proud of the economy that when the numbers come out at 8:30 in the morning, they don’t want to wait an hour, Kevin, the way you and I had to wait before we went on TV or cable. They want to go out there in a half hour and maybe push the markets around.”
The Breitbart editor and O’Leary got a nod
Hassett responded,
“Well, just look at how much Carney and O’Leary know about the economy. The fact is, if the White House comes out when there’s a retail sales number and says something that’s ludicrous, then you’re going to be red meat for Breitbart. And they’re going to set market’s straight right away. And the fact is that there are a lot of career staffers at OMB and a CEA that aren’t partisan. [They] really understand nuances of the data that might be important. Like, for example, the CPI just now. There was a massive drop it used car prices, which had a big effect on the overall number. So, it’s actually worse than you thought. I think that having Larry Kudlow out on TV a half hour after the instant response guys is not going to have any political effects.”
Hassett liked the rule change and it would be put to good use when Trump is back in office. “You know, next January, Kudlow’s minions are going to be hopefully on TV a lot. And having them out there a half an hour [earlier] I think will be good to stop the negative slant.”
Breitbart will level with America
Kudlow said, “John Carney and Kevin O’Leary know more about this stuff than we do. It doesn’t matter that we’re in the government. They know more about this stuff.”
Economists trying to make the White House look good can talk all they want, make new labels but words aren’t going to make people happy when their wallet is too thin to do anything with. Jan Hatzius is the chief economist at Goldman Sachs that has to explain why consumers aren’t happy even with supposedly good economic news.