Biden looks at explosive growth even as the Covid virus clouds expectations once again

Morgan Stanley recently raised its growth estimate for the last three months of the year to an annual rate of 8.7 percent from 3 percent due to strong consumer demand and declining jobless claims. Goldman Sachs forecast 6 percent growth and JPMorgan raised its forecast to 7 percent from 5 percent. The Federal Reserve Bank of Atlanta, whose model includes most real-time economic data, Expect a jump of 9.7 percent.

“There is still a tremendous amount of momentum in this economy,” said Rubella Farooqi, chief US economist at High Frequency Economics.

That momentum could be at risk as the new Omicron variant for Covid emerges, which could give Republicans ammunition for the 2022 half-year and leave the White House scrambling to respond to the latest outbreak. Biden will speak to the nation Thursday about the federal government’s plans to deal with the new strain, which has been outlined on US beaches on Wednesday. Contribute to the turmoil of financial markets. The administration is well aware that any return to lockdowns or widespread panic over the alternative could crush its economic hopes.

The huge numbers expected in the fourth quarter surely reflect production and spending that was delayed earlier this year by the Covid Delta variant, and many economists were already predicting that the start of 2022 would be slower even before news of the virus.

Republicans make no mistake that Americans are getting increasingly nervous about Biden’s economy with soaring food, fuel, rent, and nearly every other component that makes up monthly household budgets. The consumer price index rose 6.2 percent year-on-year in October Fastest rate in over 30 years As Americans pour in with the money accumulated during the pandemic, they compete for goods and services still limited by supply chain disruptions and labor shortages. While the oil market has been shaken by the Omicron variable, price increases in recent months have driven up gas prices and lowered consumer confidence.

This, along with fear about the future of Covid, helped lower Biden’s approval ratings, especially in terms of the economy. that Survey NPR / Marist He put his approval at 42 percent, the lowest since taking office. Inflation topped voters’ concerns at 39 percent.

Republicans are seeking to capitalize on concern about price hikes, saying they are largely motivated by Biden’s massive spending plans.

Senator Tim Scott (Republika Srpska) called inflation figures political gold mine For the Republican Party, prompting Biden Reply on Twitter on Wednesday. “Imagine rooting out the high costs for American families just to score some political points,” the president wrote on Twitter.

Rep. Blaine Lutkemer, R-Mis., told the Missourian newspaper that Biden’s spending programs would be a “disaster” and evoked the days of Carter. He said, “He will bankrupt us.” This will lead to stagflation, and it will lead to stagflation.

Republican Missouri Senator Roy Blunt provided a history lesson in a speech in the hall, recalling the Carter administration, when high oil prices drove up gasoline costs.

“A lot of Americans alive today, and certainly a lot of Americans who are in the workforce today, don’t remember the inflation of the ’70s and early ’80s that made it hard for families to keep up, that made it hard for them to buy families a home, that made it difficult for families Pay the basic bills.” He said “I hope we don’t get a strong reminder of that. But we sure are.”

In Ohio, Republican Senate candidate Bernie Moreno He recently launched a TV ad Comparing Biden to Carter.

“My parents came here for the American dream, a dream that Jimmy Carter briefly crushed,” Moreno says at the 30th minute. “Failed policies have caused massive inflation. Now Joe Biden and the Socialists are rerunning the same game guide.”

It’s a line of attack that the White House and congressional Democrats know could be devastating. So they’re counting on faster growth for the remainder of this year and next and an easing of supply constraints to make sure the GOP’s approach doesn’t stick.

“The real economy is mostly doing well and unemployment is lower than many thought,” said Harvard economist Jason Furman, who served as a senior aide to President Barack Obama. It looks like GDP growth will be very strong in the fourth quarter. We’re not all the way back yet but we’re close and that comes after we were just torn apart by Covid.”

“The political problem is that 100 percent of Americans are affected by higher prices, so it would be good if those prices eased sooner rather than later,” Forman said.

A White House official said it was too early to determine the impact of the Omicron variable on the economy, but added that “we are in a much better position” than this time last year. “We know how to fight Covid-19 and continue a strong economic recovery at the same time,” the official said. “We have the tools we need to protect ourselves from this virus.”

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