A majority of Americans disapprove of President Joe Biden’s handling of the economy, a new survey has found.
What Happened: About 66% of the respondents said they disapprove of Biden’s handling of the economy compared to 33% who approve, an AP-NORC poll conducted May 11-15 found. The poll 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 view compared to 61% who said they approve of the president’s handling of the economy.
On specific issues such as immigration and gun policy, overall 31% each felt Biden handled these well.
Biden fared slightly better when it came to student loans, with 43% approving his stance as opposed to 55% who disapproved. Strong disapproval from Republicans tilted the overall numbers against the president.
See Also: Best Depression Stocks
Downbeat Assessment Of Country, Economy: Only 21% of the respondents said the country was headed in the right direction, down from about 54% during early part of Biden’s tenure.
The percentage of people who said the economy was headed in the right direction was only 24%, with 41% of Democrats and 7% of Republicans expressing positive opinions.
It was a no-brainer that confidence in banks remained low. About 58% of the respondents said they had only some confidence in banks and financial institutions, and 31% said they hardly had any confidence.
Since March, about three major mid-sized regional banks have gone under as a rising rate environment exerted pressure on their balance sheets, resulting in bank runs.
Why It’s Important: After the pandemic, the economy rebounded strongly in 2021, thanks to stimulatory measures and a pick up in activity amid the reopening.
Source: Bureau Of Economic Analysis
One of the undesirable outcomes of the development was a spike in inflation, which forced the Federal Reserve to begin a string of aggressive interest rate hikes, beginning in March 2022.
From extremely accommodative levels of 0-0.25%, the Fed funds rate is currently at a 16-year high of 5.5.25%. The housing market has seen a downturn and manufacturing activity continues to be in recession. To make matters worse, the banking industry is going through a crisis of confidence.
The lone bright spot is the labor market, which has been resiliently adding jobs. Notwithstanding some pockets of strength, economists have called for at least a mild recession.
The most recent headwind that is causing anxiety among the public and market is the threat of a debt default. The wrangling between the president and House Republicans has cast anxiety concerning an economic catastrophe in the eventuality of a default.
After a lackadaisical 2022, the financial markets have turned higher in hopes that the Fed will pause and begin to pivot. The central bank, however, is reluctant to throw caution to the winds, given inflation continues to stay above the Fed’s target.
All these assume importance because the 2024 presidential poll is around the corner. Biden has announced his decision to run for office yet again, while a slew of Republicans, including former President Donald Trump, have thrown their hat into the ring.
Image and article originally from www.benzinga.com. Read the original article here.