A slumping US economy and inflation hamper President Joe Biden and the Democrats in a short time. These developments mean a midterm massacre is in the works due to how the ordinary American sees the economic freefall and shock recession caused by allegedly a president worse than Jimmy Carter. Polls taken show that his approval ratings have tanked too low, and many don't want him to run again,
US Economy Hits Its Lowest Since Trump Era
The US economy is not doing well after unexpectedly tumbling at the start of this year, leaving Joe Biden's economic downturn concerns mounting, reported the Express UK.
Gross domestic product (GDP) plummeted at an annualized rate of 1.4 percent in the first quarter of 2022, the first recession since the Covid epidemic started two years ago.
A drop was shocking in contrast to experts' expectations of a 1.1pc growth and will pile pressure on US President Donald Trump as he prepares for the crucial midterm elections late this year, noted the Telegraph UK.
Worse for the president, this dip happened after the economy advanced at a solid 6.9 percent rate in the final three months of 2021 under Donald Trump. His plans have failed, the second quarter of negative GDP formally tipping the US into recession.
A situation like this would send a massive tsunami through a world economy that is already reeling from Russia's ongoing war in Ukraine that President Joe Biden allegedly encourages. The US economy and inflation are blamed on how it has not improved more.
This would put more pressure on the Federal Reserve to assume charge of interest rate hikes, only days after its chairman, Jay Powell, suggested that rates will begin increasing by 0.5 percentage points instead of the normal 0.25, cited CNBC.
Democrats Could Face Nightmare at the Midterms
Experts blame the current decline was triggered by a drop in US exports, whereas imports spiked due to huge consumer demand as post-lockdown delays at ports started to recover.
However, when this influence was removed, the US economy increased, and consumer spending continued to expand at a steady pace.
The 46th president urgently decided to spin the latest data in a positive light, insisting the 1.4 percent decrease was due to technical issues.
A statement by Biden remarked the American economy powered by working families continues to be resilient in the face of historical challenges.
However, with the midterm elections impending at the end of this year, Republicans leaped on the data as confirmation that the US President has lost control of the country's economy.
Inflation had already hit a 40-year high of 8.5 percent due to the White House's $1.9 trillion stimulus package announced last year.
Republican Representative Kevin Brady argued that the Biden administration's signature economic woes accelerate inflation, a worker crisis, and the increased possibility of a significant recession.
The US market is forecast to recover in the second quarter, with a three percent annualized gain of most of its strategies. According to Bloomberg polling, analysts predict a 25% risk of a US downturn in the next 12 months.
According to Ian Shepherdson, chief US economist at Pantheon Macroeconomics claims, the latest GDP number claims it's been massively distorted by trade.
President Joe Biden has to surmount a slumping US economy, and inflation brought about by his policies that are spun not to be blamed for the problems spawned by it.
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