IBM Vice Chairman Gary Cohn on "Face the Nation with Margaret Brennan," Sept. 20, 2026

TL;DR

Consumers are primarily concerned about high energy prices, including gasoline and diesel, which affect their daily lives and the cost of food and transportation.
Despite negative consumer sentiment regarding inflation and AI, key economic indicators such as GDP, employment, and consumer spending remain strong.
Real wages have turned negative, meaning wage growth is not keeping pace with inflation, leading to reduced purchasing power, although consumers are using savings to maintain spending.
The Federal Reserve unanimously decided to hike interest rates by 25 basis points to address inflation, which is currently around 2-3%.
The rate hike is intended to slow consumer demand by increasing borrowing costs, though inflation is largely supply-driven.
The yield curve technically flattened after the rate hike, with short-term rates increasing and long-term rates decreasing or staying the same.
Ultimately, Congress needs to cut spending, and corporate debt issuance is also high, alongside government debt.

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