On September 20, 2026, Gary Cohn, vice chairman of IBM and a former top economic adviser to President Donald Trump, spoke on "Face the Nation with Margaret Brennan" about the current state of the U.S. economy. Cohn expressed concerns over declining consumer confidence, pointing to factors such as rising energy prices, growing worries about artificial intelligence, and uncertainty in the job market. He highlighted that gasoline prices have become a daily burden for many Americans, with high diesel costs disrupting transportation and the food supply chain. Additionally, Cohn noted that real wages—meaning wages adjusted for inflation—have turned negative in recent months, as wage growth has not kept up with rising prices, forcing consumers to dip into savings to maintain their spending levels. Cohn also addressed the recent decision by the Federal Reserve, now led by new chair Kevin Warsh, to increase interest rates, even as the economy showed signs of strengthening. He explained that the Fed has a dual mandate: to promote full employment and ensure price stability. According to Cohn, the recent rate hike was a necessary move to tackle persistent inflation, which remains above 2%. The decision was made unanimously by the Federal Open Market Committee, with the goal of reducing demand to match the limited supply of energy products, which has been a key driver of inflation. The rate hike, Cohn explained, does not directly affect the supply of energy, but it raises the cost of borrowing, which may lead to reduced consumer spending. He also mentioned the flattening of the yield curve, a situation where the difference between short-term and long-term interest rates has narrowed. This trend could influence mortgage rates, car loans, and credit card interest, while also increasing returns on overnight deposits, such as those held in savings accounts. In closing, Cohn discussed the recent actions of Treasury Secretary Bessent, who purchased $5 billion in U.S. debt in an effort to lower long-term interest rates. While such measures may help, Cohn argued that the real solution lies in reducing government spending and managing the growing demand for debt driven by sectors like data centers, artificial intelligence, and corporate expansion.