In 2023, U.S. President Joe Biden heralded the creation of 2.7 million jobs, declaring it a “great year” for American workers. He emphasized that strong job growth continued even as inflation reportedly dropped to a pre-pandemic level of 2 percent over the past six months.
However, contrary to these optimistic assessments, recent polls indicate that American voters remain unenthused about the state of the economy and Biden’s handling of it. Frustration within the White House is mounting as the president’s approval ratings have plunged to as low as 34 percent. Approximately two-thirds of Americans disapprove of his performance, specifically regarding inflation and employment.
Polling averages compiled by FiveThirtyEight reveal that the gap between Biden’s approval and disapproval ratings has doubled in the last year. Other surveys report unacceptably low numbers, highlighting his vulnerability concerning economic issues. These findings challenge Biden’s assertion that 2023 was “one more great year in the books.”
Economic indicators present a mixed picture. The Federal Reserve Bank of New York’s survey anticipated a 0.2 percentage point decline in short-term inflation in November, reaching 3.4 percent—the lowest since April 2021. Nevertheless, this rate still significantly exceeds the Federal Reserve’s annual target of 2 percent. While prices fell in November for the first time in over three years, the decrease was marginal and largely driven by sinking gas prices. Persistent pressures on services like apartment rents, restaurant meals, and auto insurance suggest underlying inflation remains stubbornly high.
Further complicating the outlook, the Federal Reserve Bank of Cleveland’s nowcast data estimates that headline Consumer Price Index (CPI) and core CPI will rise by 0.30 percent and 0.33 percent, respectively. This uptick would signify an increase from October and November figures and mark a cumulative surge of more than 17 percent since Biden took office. Projections for December indicate that headline inflation is expected to rise by 0.2 percent for the month and by 3.2 percent on an annual basis.
The persistent inflationary pressures suggest that interest rates may remain on hold for the foreseeable future. As Americans grapple with the cost of living and economic uncertainty, the disconnect between positive job growth statistics and public sentiment highlights the complexities facing policymakers. The global community watches closely, as the economic health of the United States invariably impacts international markets and economies, including those in Asia.
Reference(s):
cgtn.com
