This week in Bidenomics: It’s about time

The latest economic developments in the United States are shaping up to be a crucial test for President Joe Biden’s administration. Despite a strong job market and economic growth, inflation remains a significant challenge. The inflation rate has fallen from a peak of 9% in 2022 to 3.4% today, but Americans still feel the impact of higher prices. This persistent issue is reflected in Biden’s dismal approval ratings, even with low unemployment and a growing economy.

Biden’s strategy to address inflation involves focusing on illegal migration at the southwest border. Recent trends indicate a significant decrease in border crossings, which could be an effective way to counter Trump’s conviction on 34 felony charges. By emphasizing Trump’s legal troubles and Biden’s efforts to address border security, the administration aims to shift the narrative away from inflation.

Meanwhile, Vice President Kamala Harris has taken over as the Democratic presidential nominee, replacing Biden. Harris is campaigning to persuade Americans that the economy is as good as the numbers suggest. The latest GDP data shows solid growth, and a key inflation gauge indicates that inflation is heading back to normal levels. This could lead to interest rate cuts, benefiting homebuyers and other borrowers.

Despite these positive economic indicators, consumer sentiment remains low. The University of Michigan sentiment index fell in July and remains below pre-COVID levels. Many Americans perceive the economy as being in recession, although this is not the case. Harris’s ability to connect with voters and present a more energetic economic message could be crucial in the upcoming elections.

Overall, the Biden administration is facing a complex economic landscape, where inflation continues to be a major concern despite other positive indicators. The upcoming presidential election will hinge on how effectively Biden and Harris can address these challenges and present a compelling narrative to voters.