Biden’s Economic Mission Underway – POLITICO

Powell Rains on CraneRon Klein went to work this morningfired the official White House chief of staff twitter account And we’ve done the unthinkable just a month or so ago. lots of happy tweets About the state of the economy.

Mostly, Klein highlighted the latest pretty good news on inflation, an issue that has squashed President Joe Biden’s approval ratings and feared an absolute defeat in the midterm elections, an issue that has mostly engulfed Democrats in crash positions. I wanted to

The newly released figures show that the annual inflation rate, as measured by the Personal Consumption Expenditure Index (which I have written curiously about in this space before), jumped from 6.8% in June to a pace of 6.3% in July. indicates that it has decreased. This is still very high by historical standards and a pace not seen since the early 1980s.

But what matters at the moment is trends. And now there is a significant amount of data to suggest that inflation may have finally — finally, and with great pain — peaked. Crane’s thoughts didn’t stop there. He also noted positive developments in consumer sentiment, lower gasoline prices, and personal income and spending.

But Klein started it all with an important caveat.There’s a lot left to be done regarding the economy…” he wrote before ticking off a list of positive trends filled with up and down arrow emojis. It certainly wasn’t a coincidence.

While many economic indicators certainly show improvement, prices are actually declined Today’s report shows that most are still fairly volatile, with some getting worse, in June and July.

Consumer and business sentiment remains low. New home sales have been sluggish as the Federal Reserve is pushing up interest rates to combat inflation, and an overall decline in home prices may be ahead in certain markets (this will be discussed in detail later). Consumers are still seeing price increases outpacing wage increases, making everyone poorer and angrier.

Gasoline under $4 per gallon The polls could give Biden and the Democrats a bit of an edge. But pump prices are still higher than when the president took office. The White House, along with other big buyers, would like nothing more than to sign a global price cap on Russian oil.

In an email exchange with NightlyKlein emphasized the caution that preceded his tweet storm (which also included retweets of many positive news stories about inflation reports).

“I regularly stress that there is more to be done and that inflation is not what we want,” Klein wrote. “These are not ‘mission accomplished’ tweets. But I think the fact that the president’s economic policies are moving forward deserves credit. ”

fair enough. A slower pace of inflation would also take some of the pain out of criticism that the president’s student loan forgiveness efforts were unfair and inflationary.

But when things are so groovy… Why did Wall Street crash today? The Dow plummeted over 1,000 points, or 3%. The S&P also dropped 3%, while the technology-dominated Nasdaq plunged nearly 4%. why do you ask That’s why, thanks to Jerome Powell and the aforementioned Fed.