Most Americans Disapprove of the President Joe Biden’s handling of the economy, a new survey has found.
What happened: Nearly 66% of respondents said they disapprove of Biden’s handling of the economy compared to 33% who approve, the AP-NORC poll conducted May 11-15 found. The survey was conducted among 1,680 adults nationwide,
Republicans were more critical of the president, with 94% disapproving of his handling of the economy. Among Democrats, 38% responded with a negative outlook compared to 61% who said they approve of the president’s handling of the economy.
On specific issues like immigration and gun policy, an overall 31% each felt Biden handled them well.
Biden fared slightly better when it came to student loans, with 43% approving of his stance, while 55% disapproved. Strong disapproval from Republicans tilted the overall numbers against the president.
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Downbeat assessment of country, economy: Only 21% of respondents said the country is moving in the right direction, down from about 54% during the early part of Biden’s term.
The percentage of those who said the economy was headed in the right direction was only 24%, with 41% of Democrats and 7% of Republicans expressing a positive opinion.
It was a no-brainer that trust in banks remained low. About 58% of respondents said they had only some trust in banks and financial institutions, and 31% said they had hardly any trust.
Since March, around three major mid-sized regional banks have come under pressure, as a rising rate environment put pressure on their balance sheets, resulting in bank runs.
Why this is important: After the pandemic, the economy made a strong comeback in 2021, thanks to an uptick in activity amid stimulus measures and reopenings.
Source: Bureau of Economic Analysis
One of the undesirable consequences of the development was a rise in inflation, which forced the Federal Reserve to begin aggressive interest rate hikes from March 2022.
From a highly favorable range of 0-0.25%, the fed funds rate currently stands at a 16-year high of 5.5-25%. A slowdown has been observed in the housing market and a slowdown in manufacturing activity continues. To make matters worse, the banking industry is going through a crisis of confidence.
The only bright spot is the labor market, which has been adding jobs flexibly. Despite parts of the strength, economists are calling for at least a mild recession.
The most recent constraint causing concern among the public and the market is the threat of loan defaults. The spat between the president and House Republicans has raised concerns about the economic devastation in the event of a default.
After a lackluster 2022, financial markets soared higher on hopes that the Fed would pause and start pivoting. The central bank, however, has been reluctant to throw caution to the wind, given that inflation remains above the Fed’s target.
All these are important as the 2024 presidential election is round the corner. Biden has announced his decision to run for office again, while several Republicans have thrown their hats in the ring, including former President Donald Trump.
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