The inflation outlook is improving more rapidly than many economists expected, giving the White House hope that it can avoid something that all Presidents seeking reëlection fear: an election-year recession.
The White House is increasingly sure it can avoid something that all Presidents running for reëlection fear: an election-year recession.After the Labor Department announced last week that consumer-price inflation had fallen to an annual rate of three per cent in June, about a third of its rate a year ago, President Joe Biden hailed the drop, combined with a low unemployment rate, as “Bidenomics in action.
With the inflation outlook improving more rapidly than many economists expected, the White House is increasingly sure it can avoid something that all Presidents seeking reëlection fear: an election-year recession. On Monday, the economics team at Goldman Sachs put the probability of a recession in the next twelve months—that is, a broad-based slump in spending, employment, and G.D.P.—at just twenty per cent.
For those economists who said that a big rise in the unemployment rate would be required to significantly reduce inflation, the latest numbers are an embarrassment. But for Biden and the rest of the country, they’re a welcome development. The news suggests that the Fed is almost done raising interest rates, and that the economy is heading for a soft landing rather than a hard one. What politicos want to know is whether the positive economic news will turn around Biden’s dismal poll numbers.
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.
Why Russia's decision to halt grain deal is stirring global inflation worriesRussia’s decision Monday to suspend the Black Sea Grain Initiative led to a short-lived rally in the wheat and corn markets, but concerns over global...
Read more »
The 'Why?' behind Why, ArizonaIf you've ever driven by Why, Arizona on the way to Rocky Point, and wondered, 'Why?' Well, here's your answer.
Read more »
GBP/USD stays defensive around 1.3100 on mixed news, focus on UK inflation, US Retail SalesGBP/USD stays defensive around 1.3100 on mixed news, focus on UK inflation, US Retail Sales – by anilpanchal7 GBPUSD BOE Fed RiskAversion Macroeconomics
Read more »
Pay Raises Are Finally Beating Inflation After Two Years of Falling BehindWorkers’ pay gains outpaced inflation for the first time in two years, providing some financial relief—while complicating the Fed’s efforts to tame prices
Read more »