There are fears that the US is already in recession, which could deal a fatal blow to the White House hopes of Kamala Harris.
America’s booming jobs market has long been touted by the Biden-Harris administration as a sign that the US economy is thriving.
JPMorgan has upgraded its estimated odds of a US recession striking within the next 12 months from 25 per cent to 35 per cent, with analysts pointing toward a sharp decline in labour demand.One gloomier warning comes from economists Pascal Michaillat and Emmanuel Saez at the University of California.
But Paul Mortimer Lee, research fellow at the National Institute of Economic and Social Research, says “the risks are definitely mounting”. Homeowners have locked in low mortgage rates and the government has been on an extraordinary borrowing binge – something Harris promises to continue with heavy spending on green initiatives.The crunch in stock markets threatens confidence, for instance, while geopolitical instability in the Middle East is a danger to employers’ plans. Donald Trump will hope this can play into his hands, as markets performed strongly in his first term, bolstered by corporate tax cuts.
“They are probably going to have to cut like lunatics, because the economy, when it turns – and I think it is turning – will turn quite viciously,” he says.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Kamala IS brat’: an expert explains the Kamala Harris memes flooding the internetCampaigns are expensive, but capturing popular culture is effective and much cheaper.
Read more »
Kamala Harris gains momentum as Democratic nominee; Queensland’s cold snap; and your Olympics guideThe Democratic party’s rules committee will meet on Wednesday local time to set the process for selecting new nominees
Read more »
Democrats rush for new strategy as Kamala Harris emerges as favoriteEndorsements flood in for vice-president – but notable exceptions suggest a desire for an open convention
Read more »
US election live updates: top Democrats back Kamala Harris as donations surge after Biden steps asideVice-president says she will do ‘everything in my power to unite’ the party; ActBlue, the liberal political action committee, says $46.7m raised in hours since Biden withdrew from race
Read more »
Kamala Harris is no dominating leader – and that may be her biggest strengthA shortage of accomplishments as vice-president does not matter: her real job is to weld together a shattered Democratic party, says the Guardian columnist Simon Jenkins
Read more »
Joe Biden has been a foreign policy president, but Kamala Harris is no noviceUS president’s contacts list is unmatched since George HW Bush’s, but his VP has been slowly building her portfolio
Read more »