This week in Bidenomics: Economy Plus

The latest economic updates under President Biden’s administration highlight several key points. Inflation rates have continued to decline, with the annual rate now at 3.4%, down from a peak of 9% in 2022. This normalization of inflation is a welcome development for consumers and could be a boon for Biden’s reelection prospects. However, there are underlying concerns, including a decline in consumer savings and an increase in unemployment claims. Retailers have responded to these shifts by reducing prices on everyday items, reflecting market dynamics rather than benevolence. Despite these trends, the economy is expected to continue growing, with GDP growth forecasted at 2% in the fourth quarter of 2024. The Federal Reserve’s interest rate hikes have slowed the economy, but there is no guarantee that a recession will not ensue. President Biden’s approval rating remains low, partly due to ongoing economic concerns, but his successor, Kamala Harris, is gaining momentum and may be better positioned to address these issues.