The economy is improving, the stock market is soaring, yet many Americans feel like they’re living in a recession.
WASHINGTON—President Joe Biden, who has typically refrained from discussing the stock market, finally broached the subject in mid-December, celebrating a record high for the Dow Jones. It was an apparent attempt to appeal to voters who are still pessimistic about inflation and the economy.
The president recently trolled former President Donald Trump in a campaign video posted on social media; mocking his predecessor’s 2020 warning of a stock market crash if Mr. Biden were elected.
“Good one, Donald,” President Biden wrote in a Dec. 15 post on X, formerly Twitter.
During the 2020 presidential campaign, President Trump said, “If Biden wins, you’re going to have a stock market collapse the likes of which you’ve never had.”
The recent rally shows three major U.S. indexes notching gains for seven consecutive weeks thanks to the Federal Reserve’s “dovish” stance. Since Oct. 27, the Dow Jones Industrial Average and S&P 500 surged by 15 percent, and the Nasdaq jumped by 17 percent.
On Dec. 13, the central bank concluded its final policy meeting of the year, signaling that its anti-inflation campaign is making progress and that monetary policy tightening has likely come to an end.
The Fed’s policymakers are now predicting three rate cuts in 2024, more than previously projected, offering a ray of hope to investors who have been gloomy for the past two years.
President Biden, who’s running for reelection, has struggled to win over Americans with his economic agenda, which he calls “Bidenomics.” The 46th president may now want to capitalize on the recent stock market gains with the hope of making his economic message appealing to voters.
According to a new CBS News poll, Americans perceive the current economic challenges as the most severe they’ve faced in generations, surpassing the 2008–09 financial crisis and even the inflation rates and gas shortages experienced in the 1970s.
Despite positive job reports and discussions of a “soft landing” in the economy, people still focus on their personal experiences rather than broader economic data. An overwhelming number of respondents say their incomes aren’t keeping up with the rising cost of living.
According to a recent poll by Bankrate, 59 percent of Americans believe the United States is in a recession, with many referring to it as a “silent recession.”
By Emel Akan
