|
Biden's mounting midterm threat: Inflation angst outweighing historic job growth
[Politico] Democrats once expected a thriving post-Covid economy to be their big strength heading into the midterms. Instead, the path to Election Day is littered with land mines for a party struggling to avoid annihilation at the ballot box.President Joe Biden and Democratic lawmakers face the threat of spiraling inflation, driven by soaring food, energy and lodging costs. The Federal Reserve is embarking on an aggressive series of interest rate hikes — as many as seven this year alone — to curb rising prices and slow the economy. The war in Ukraine is further disturbing supply chains, roiling commodities markets and fueling uncertainty. Add in a new wave of Covid lockdowns in China that could bring more disruptions to trade and you’ve got a toxic mix. Polls show some two-thirds of Americans view the country as being on the wrong track. Biden’s disapproval rating on the economy stands at 58 percent, while Republicans have a 54-35 percent lead on the issue. And the widely watched University of Michigan consumer sentiment survey recently fell to its lowest level in more than a decade. Incumbent parties usually lose House and Senate seats in off-year elections, but turning these attitudes around could be the difference between Democrats taking average losses this fall or getting punched out like they did in 1994. And administration officials are increasingly concerned about the economy as a heavy drag in the midterms, according to several allies. “The mood is just shockingly bad inside and outside the White House,” said Steven Rattner, an investment banker and former Obama administration official who speaks to senior Biden aides. align="right" />[Politico] Democrats once expected a thriving post-Covid economy to be their big strength heading into the midterms. Instead, the path to Election Day is littered with land mines for a party struggling to avoid annihilation at the ballot box. President Joe Biden and Democratic lawmakers face the threat of spiraling inflation, driven by soaring food, energy and lodging costs. The Federal Reserve is embarking on an aggressive series of interest rate hikes — as many as seven this year alone — to curb rising prices and slow the economy. The war in Ukraine is further disturbing supply chains, roiling commodities markets and fueling uncertainty. Add in a new wave of Covid lockdowns in China that could bring more disruptions to trade and you’ve got a toxic mix. Polls show some two-thirds of Americans view the country as being on the wrong track. Biden’s disapproval rating on the economy stands at 58 percent, while Republicans have a 54-35 percent lead on the issue. And the widely watched University of Michigan consumer sentiment survey recently fell to its lowest level in more than a decade. Incumbent parties usually lose House and Senate seats in off-year elections, but turning these attitudes around could be the difference between Democrats taking average losses this fall or getting punched out like they did in 1994. And administration officials are increasingly concerned about the economy as a heavy drag in the midterms, according to several allies. "The mood is just shockingly bad inside and outside the White House," said Steven Rattner, an investment banker and former Obama administration official who speaks to senior Biden aides. Posted by: Besoeker 2022-03-25 |
| http://www.rantburg.com/poparticle.php?ID=628511 |