Pocketbook issues and the SOTU

In his third State of the Union address, President Trump sought to align his administration with an economy he described as “the best it has ever been.” Hailing the “great American comeback” might be viewed as a kind of “mission accomplished” claim for the man who vowed to make American great again.

President Reagan was hailed as “the Great Communicator.” Speaking to both houses of Congress even as the impeachment drama has yet to be formally concluded, it might be said that President Trump was “the Great Compartmentalizer.”

Given the large national audience, the speech provided the president with an opportunity to make an appeal to the public for re-election. There’s no separating this high drama from the election season now fully underway with the Iowa caucuses behind (although the final outcome unclear) and New Hampshire primary just ahead and Super Tuesday just a month away.

Many Americans are upbeat on the state of the economy and their outlook for further gains. Some 43% of Americans tell us they think their financial situation will improve this year.

Even so, half of working Americans told us that they had not received a boost in pay over the past year. Is it any wonder then that voters are sharply divided on politics? A new Gallup survey found that while the president's approval rating has hit a high of 49%, some 50% of Americans disapprove of the job he's doing. That leaves just 1% with no opinion, suggesting he doesn't have a lot of people available to convert come election day.

On the issues:

Family leave: In terms of specific policy proposals, his call to extend family leave beyond federal workers to cover all working parents working seemed particularly well received. This drew applause from both sides of the aisle and a standing ovation from House Speaker Nancy Pelosi.

Highway funding: Coming just days after House Democrats proposed a $760 billion infrastructure bill, Trump called on Congress to pass a less ambitious highway funding plan proposed by Wyoming Rep. Sen. John Barrasso. It marks scaled-back hopes for completing much-needed work on the nation’s roads, highways, bridges and airports.

Education: The president stood clear of touching the topic of student loan debt and funding of secondary education, prime fodder for debate among Democrats vying for their party’s nomination. Instead, he sought to play to the Republican base by pressing for funding for government funded access to private schools, and pledged support for vocational technical courses in high schools.

Healthcare: On the topic of one of the major priorities cited by voters, the president vowed to resist Democratic efforts saying, “we will never let socialism destroy American healthcare.” At the same time, he pressed for federal legislation to reduce drug prices. One has a difficult time understanding where the line should be drawn between free markets and government intervention. As if to add another thread to this, the president said, “we will always protect your Medicare and your Social Security,” programs once hailed by critics as virtually socialist.

What was missing:

-Federal Reserve Chairman Jerome Powell, picked by the president himself to be the nation's chief central banker, didn't get a mention of any kind during the speech. Powell and the Fed have been constant Trump criticism targets as he's pressed for lower rates. In September, Trump tweeted of Powell and the Fed: "No “guts,” no sense, no vision! A terrible communicator!"

The Fed cut interest rates three times last year to support the economy, opting to keep them steady at the most recent policy-setting session. The low level of rates has reduced the cost of borrowing including with mortgages, but has also lowered savings rates.

-There was no specific mention of climate change. Instead, the president repeated his support of an initiative to plant one trillion trees around the globe.

-Nothing was included in the speech about how to manage burgeoning federal debt and deficits, both exacerbated by 2017 passage of the Republican-backed tax cut.

Let us know your thoughts in the comments section

What is your own outlook for your personal finances in the months ahead? How much does the election play into your view, or not? Is Washington part of the problem or part of the solution? We'll have much to examine as we try to connect the dots between politics, the economy and personal finances in the months ahead.

Mark Hamrick is senior economic analyst and Washington Bureau Chief for Bankrate.com. 

Follow on Twitter: @Hamrickisms