Welcome to the Washington Week extra. I'm Yamiche Alcindor. We're continuing our conversation
on the economy. This week, the Federal Reserve raised interest rates by three quarters of
a percent to fight inflation.
This was the largest hike in 28 years, and Federal Reserve chair
Jerome Powell indicated that a similar hike could come in July if
the economy doesn't improve. In response to the feds. Historic action
stocks tumbled.
The Wall Street fell into bear market territory amid increased concerns
that are recession may be looming. Meanwhile, according to a USA
today, Suffolk poll President Biden Approval rating Is that 39% amid
economic fears joining me tonight to discuss this and more rascal
Host of weekend edition Sunday for NPR, Scott McFarlane.
Congressional correspondent for CBS News and even makin National
politics reporter for CNN. Thank you all of you for being here, even
gonna start with you because you're the one out in the country while
we're all sort of doing her thing in D. C. You are talking to people
out there so much about this economy and how people are feeling so
talk to us about the politics of the economy and who people are really
blaming for what's going on? Well, I think that Democrats and Republicans
are equally frustrated.
About this issue. I think maybe some Democrats will give President
Biden a little bit of grace here, but but not a whole lot, And unfortunately,
I think that the administration has sort of trained their sights
on corporate greed and actually Democratic candidates as well. That
is their line. This is the fault of corporate greed. Your gas prices
should not be this high. That might be all well and good. But at
the end of the day
Americans are looking to leadership for them to do something. It
is not sufficient to them, as you know, well intentioned as they
Democrats, maybe.
To lay the blame on corporations. They want some action. And, of
course, Republicans Aisha are laying the blame on Democrats. Um it's
interesting to see a White House this now, of course, being the Biden
administration that we covered together as well. They're saying that
it's Putin's price hike. But also President Biden was this week,
pointing his his sort of anger at oil companies. I wonder what you
make of the White House's
Messaging here and what they're trying to say, versus what they're
actually able to sort of message to regular people everyday Americans.
Well, then this is a tried and true strategy. Right. So when gas
prices go up, Democrats generally will blame all companies. A lot
of times they will call and the executives into Congress. Um, this
week, Biden wrote a very strongly stern letter to refine her saying
refined more. We'll do what you you know, you know you need to do
more of the problem, of course, is that you know, producing all and
and gasses.
Not a simple as, like.
You know, sticking a straw on the ground and getting all out. That's
just not the way things work, and the price of all is set on a global
market. It's not just based on what happens in the US now. The problem
is, Americans don't want to hear that They feel like they're dot
given right is to have cheap gasoline, and if they don't get that
they're mad, but that like that is the fact is this is a difficult
situation. Biden has used almost every lever that he has. He's tapped
the Strategic Petroleum Reserve. He is going to Saudia.
Arabia, even though they say it's not about fuel. It clearly also
is
But there's not much else he can do. And and Scott. What are you
hearing from lawmakers in Congress, especially as I was reading this
today, 60% of executives say that they're getting ready for what
could be a recession. That's scary thinking about sort of where things
are going back to the last recession, the great recession What happened
in 2010?
Dozens of seats flipped in the U. S house flipped from Democratic
to Republican. Here's the thing about economic impact on politics.
It often can be factional troubles in the manufacturing sector. The
rust Belt may turn you out troubles on Wall Street.
Perhaps the major cities feel it more immediately. Gas and groceries
is different.
Everybody feels it That is a 50 state and DC phenomenon. Every incumbent
has to struggle with constituents who are upset and really doesn't
matter. Socioeconomic class. Yes.
Low income folks get hit the hardest, but everybody
Is concerned about it. Everybody goes to the grocery store. Everybody
feels that this is a universal economic impact. In this moment, it
transcends party. It's just trouble for incumbents even weigh in
here when you think about sort of what Scott is saying, especially
when it comes to the idea that everyone is feeling this and I'll
say I'll raise my hand as one of those Americans who you put money
in your gas tank. And you're like, Wait, what is going on here?
That's why it's so difficult to outrun President Biden in an interview
with this, uh this week with The Associated Press, he sort of pivoted
and said he still thinks that his administration with the cooperation
of Democrats in Congress can do other things like lower the cost
of prescription drugs like produced the cost of utility bills like
polls a minimum tax on corporations.
And it makes sense that he's sort of trying to shift the message
right anything but gas prices right because he can't outrun it.
So he is hoping that he will be able to with Democrats in Congress
to provide relief in some other avenue and look how this masks the
January 6th hearings.
This seminal, unique American moment we are in our democracy is on
the line, and the electorate is being driven by something else.
That in itself is dangerous. That's that's such a great point. When
you think about sort of the fact that we have to split our attention,
and that Americans can't focus on possibly our democracy coming to
an end, or at least the dangers of our democracy coming to an end
because they're focused on everyday pocketbook issues, which is very
understandable. I want to ask you, Scott, there was some reporting
that White House officials were on the hill.
They were sort of briefing, lawmakers and lawmakers, especially Democrats
were saying, What are what can we say here? And there wasn't really
a response that lawmakers like that at the White House staff briefing
lawmakers, which is a different statement than the principal briefing
lawmakers, I think what Democrats wanted
Have happened is because caught trying on something. There's no lever
to push. It had been pushed long ago if there was one, but they want
to be shown taking some action and being caught in the act of trying
to respond to this crisis, and they haven't figured that out just
yet.
I one Republican asked me this week. You know when you're gonna have
your primetime hearings on inflation.
Let's leave aside.
The compelling nature of a primetime hearing on inflation. That would
be great television. It's a point that they're going to make between
now and November regularly. Where's the focus on inflation? And they're
just gonna beat Democrats with
And I usually last question to you. I'm hearing not just from Republicans,
but everyday people in my family. When I check into them and say,
Are you watching the hearings? They say, are they here? Literally?
Someone tells me are the hearings on gas prices? Yes, Democrats want
to think that that's a talking point from Republicans. But I can
tell you in my own reporting that people are saying that to me. I
wonder what you're hearing from folks as they're thinking through,
sort of where their attention needs to be.
Well, you know, they're They're looking at these pocketbook issues,
especially when you have people that make their living. I n transportation
or you have uber drivers and lyft drivers, and we talked to a transportation,
um, of the owner of a transportation company just last week on on
weekend edition about how he struggling and can't you know, do all
the trips that he used to do, because it costs so much money.
So that like that's what people are focused on because it is so hard
in any increase in gasoline is always like its attacks. It's basically
a rise almost like a rising taxes and especially for poor people
who have a lot less income. It makes such a huge difference when
you have to pay so much at the tank to me, even when it comes to,
you know, going to the grocery store. I gotta pay 50 more dollars
at the grocery store just for some Cheez its and some, You know,
Lunchables. It's a lot
Yeah, and then people can you get and then they're still supply chain
issues where people can't find the products that they want. So these
are things that people it's very hard to message against. You can't
message against it because it's everyday life. It's like what you're
going through and you can't miss it.
You can't miss it. And I was listening to a story that where this
woman said I put $40 in my tank. I don't care where it gets me. $40
is my limit. I felt her pain so deeply. So thank you so much to all
three of you for really talking about the politics of the economy
here. Thank you, too, Scott, Eva, and Ayesha for joining us and for
sharing your reporting
I'm Yamiche Alcindor. Goodnight from Washington.