Biden wants credit to support a strong economy. It's not popular in the United States.
Despite huge job growth and cooling inflation, Americans remain pessimistic about their economy. Recent polls show that Americans remain pessimistic about the economy despite huge job growth and cooling inflation.
Recent polls show that Americans still struggle with high costs and aren’t convinced that the U.S. can stop a recession. The Federal Reserve takes steps towards slowing the economy down.
This presents a challenge to President Biden. He took a victory lap last Wednesday after federal data showed that the U.S. created a shocking 517,000 jobs for January. Analysts had predicted slowing job growth. The unemployment rate dropped to 3.4 percent, its lowest level since 1969.
CBS News-YouGov poll on Sunday showed that one-third of Americans think the economy's state is "good," while 61% say it's "bad". This is a significant improvement over the previous week's poll, which saw only 28 percent saying the economy is good. However, this is still a long way from historical figures.
The survey was conducted February 1-4 and found that 38 percent of Americans expected the U.S. economy to enter recession this year. 24 percent also predicted the economy would slow down. Only 20% predicted that the economy would grow.
Voters are still concerned about inflation. While inflation has fallen in recent months, prices dropped 0.1 percent between December and January according to the Labor Department, the cost of essential goods is still high.
While real wages have seen recent gains, they are still down 1.7% from last year. According to Labor Department data, housing costs have increased by 7.5 percent over the past year. Groceries prices have increased 11.8 percent annually, and they continue to rise despite falling prices for other goods.
Patricia Rojas, a New York City-based hotline manager and database manager at anti hunger nonprofit WhyHunger, stated that more people are calling in to access food pantries because of higher grocery prices.
Rojas stated that staples such as eggs, which are more expensive than they were a year ago, now cost $1.25 at the dollar store. Food pantries are running out faster because they don't have the money to buy as many items.
Numerous prominent economists have been forecasting doom and gloom since months. They claim that the Federal Reserve's interest rates hikes, which are designed to fight inflation but cannot fully control prices, will lead to a recession in the U.S."These critics and cynics have it wrong. Biden stated Friday that while we might face setbacks along our journey, and there will certainly be some... it is clear that our plan works because of the grit of the American worker." The economy is the No. According to a Pew Research Center poll, the economy is the No. 1 issue for U.S. citizens. Three quarters of respondents agreed that strengthening the economy should be Biden's top priority.
The majority of voters placed the responsibility on Biden to keep the economy alive. According to the CBS poll, 48 percent of respondents said that Biden would be responsible for the economy in 2012. This is more than the Federal Reserve's 39 percent.
The White House is now turning to executive actions to boost workers and consumers. Officials claimed that the rule to limit credit card fees was a Biden administration initiative that would save consumers up to $9 billion annually." They already face consequences if they're late. They are subject to a torrent of interest if they are late. Rohit Chopra, Director Consumer Financial Protection Bureau, stated that interest rates are now at 20 percent for the average credit card.