Ronna McDaniel, chair of the RNC, argues that the “Biden administration’s mistakes” are causing problems for Americans, including an increase in crime and higher prices.
According to a new survey released this week, Americans are rapidly losing confidence in the US economy, reflecting heightened consumer concerns about skyrocketing inflation and soaring prices for basic necessities.
A Gallup poll released Wednesday shows Americans have low confidence in the economy, with 42% describing the current economic climate as “bad” and 38% as “fair.” By comparison, 2% of respondents said the economy was “excellent” and just 18% called it “good,” according to the poll, conducted between April 1 and 19.
The Fed is raising interest rates for the first time in 3 years and projects 6 more hikes as inflation picks up
Additionally, most Americans expect the economy to continue to deteriorate: About 76% said the economy is getting worse, compared to 20% who think it is getting better.
“Business confidence remains very low, but is still well above levels seen during the Great Recession,” the survey said. “However, if inflation continues to rise and gas prices remain high over the summer months, US economic confidence could well continue to fall.”
Gasoline prices at several gas stations on April 11, 2022 in Washington, DC are about $4 per gallon for the cheapest kind (Chip Somodevilla/Getty Images/Getty Images)
Four in 10 Americans have identified economic problems as America’s biggest problem — the highest level in six years — including 17% who think the biggest problem is the high cost of living. Another 6% said fuel prices were the biggest problem.
Those numbers are up slightly from last month, when 35% of Americans said the economy was their biggest concern.
There is a partisan rift in the data. Republicans are more likely than Democrats to cite economic problems, and inflation in particular, as the country’s biggest problem. About 42% of respondents who identify as Republicans said the economy was the #1 issue, compared to 33% of Democrats.
The survey comes shortly after the government reported that consumer prices rose 8.5% year on year in March, the fastest pace since 1981. Prices of key staples have soared over the past year, including groceries (8.8 %) and gasoline (48%). , electricity (13.5%) and rent (5.1%).
A gasoline truck exits the Marathon Oil Refinery after being loaded with fuel October 29, 2021 in Salt Lake City, Utah. (George Frey/AFP via Getty Images) / Getty Images)
The surge in inflation was bad news for President Biden, whose approval rating has been bound to fall as consumer prices have risen. The White House has blamed the price spikes on the Russian war in Ukraine, supply chain shortages and other pandemic-related disruptions in the economy, while Republicans have blamed them on the president’s massive spending agenda.
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The Federal Reserve is now taking an increasingly restrictive approach to fighting inflation. Policymakers hiked rates by a quarter of a percentage point in March and have since confirmed that larger hikes of half a percentage point are likely in the coming months from May.
People shop for groceries at a supermarket in Glendale, California on January 12, 2022. (Robyn Beck/AFP via Getty Images)/Getty Images)
“It’s appropriate to move a little faster,” Fed Chair Jerome Powell said during a panel discussion at the spring meetings of the International Monetary Fund and World Bank last week. “I also think there’s something about the idea of preloading whatever you think is appropriate. So that suggests 50 basis points are on the table.”
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