【 World Theory 】 US Media: The US government is immersed in optimistic emotions about the "improvement" of the economy. Polls show that nearly half of the American people do not buy into the cost | US | economy
On August 11th, China Daily reported that due to soaring costs of rent, groceries, and energy, millions of American households are facing abnormally high prices. According to data released by the US Department of Labor on the 10th local time, the US Consumer Price Index rose 3.2% year-on-year in July, slightly higher than the 3% increase in June. Fox Business Channel reported on the 10th that the main driving factor of rising prices is rising housing costs, and as one of the most intuitive feelings of Americans towards soaring inflation, grocery costs have risen for the third consecutive month.
US financial analyst Larry Kudlow said that the so-called core inflation rate in the US is still 4.7% higher than last year. Food and beverage prices have increased by 4.8% compared to a year ago, while grocery prices have risen by 3.6%. This indicates that although the inflation rate in the United States is lower than before, it is still stubborn.
Screenshot of Fox Business Channel website report in the United States
The scorching inflation has brought serious financial pressure to most American households, forcing them to pay more for daily necessities such as food and rent. The burden borne by low-income Americans is disproportionate, and their already struggling wages are severely affected by price fluctuations.
In a July article on the Politician News website, it was pointed out that the US government is preparing for a large-scale resumption of student loan payments this autumn, which may cause economic shock to millions of households. At the same time, Republican lawmakers in Congress have signaled plans to launch a budget war that could further destabilize American politics. Despite warnings that the Federal Reserve's continued interest rate hikes may ultimately lead to a recession in the United States, the Federal Reserve is still determined to raise interest rates to lower inflation to 2%
The United States is unable to curb the spread of inflation in the long term.
However, according to a report by The New York Times earlier this month, US President Biden and his aides are immersed in the "best" economic data so far during his presidency, but the reality is "very disappointing" as US polls still show that the economic situation is not optimistic.
In a survey conducted by The New York Times and Siena College, 49% of respondents believed that the economy was "very poor", while only 20% believed that the economy was "very good". Economic officials inside and outside the US government have warned that risks still exist as policymakers seek to achieve a so-called soft landing and reduce high inflation without triggering an economic recession. Many Republicans point out that the inflation rate is still far above the historical average, and for many American workers, wage growth has not kept up with the pace of rising prices.
Some forecasters, including the World Federation of Large Enterprises, continue to predict that the US economy will enter a recession by the end of this year. They cited indicators that often foreshadowed economic recession in the past, with the most obvious being a rapid decrease in loans from small and large banks.
Multiple factors combined, the US economy is facing a recession crisis.
The article points out that there are still risks in the coming months. Inflation may rebound, especially if oil prices continue to rise as they have in recent weeks. The job market may also deteriorate, leading to a sharp increase in unemployment rates. Many forecasters still predict that an economic recession will begin this year or early next year. Even US Treasury officials acknowledge that the US economy is facing significant risks in the coming months. Privately, many aides to President Biden have expressed some uncertainty about whether the US economy can ensure a soft landing at present.
Recently, CNN host Victor Blackwell questioned White House Press Secretary Caroline Jean Pierre about the "dissatisfaction" of the American public with President Biden's economic performance in a poll. However, she ignored such a low economic approval rating and said that the poll "cannot explain everything.".
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