We want to update you on the American economy as seen through the eyes of the Biden Administration. All the statements we make are based on facts reported by reputable and reliable sources. Depending on your political leanings you may choose to deny the numbers but they will still tell a story…Bidenomics–however you view the term–is working.
- All major stock indexes are at all-time highs. This suggests a broadly based sense of business optimism for the future. (Remember when the term “recession” was everywhere?)
- Most large companies are posting earnings increases for the 2024 year. Yes, some sectors are showing less than average growth but overall the earnings numbers are fueling optimism and market growth.
- The latest inflation data continues to be encouraging. We haven’t reached the 2% Federal Open Market Committee target yet but we are definitely headed there at 2.9% and dropping.
- Job growth appears robust but slowing and the Fed is toying with a September prime rate cut that should support economic expansion. Making borrowing costs cheaper will encourage businesses to build new plants, re-tool, hire more employees, etc.–all stimulants to the economy.
- The unemployment rate is holding firmly at 4%. This is considered “full employment” by economists because the assumption is that–at any one time–4% of working adults are “in transition” between jobs–NOT UNEMPLOYED.
Bottom line: the American economy is healthy and growing. Whether you credit Joe Biden or his administration the facts are the facts. It’s important to remember that governing is a team sport and the Biden team is clearly winning. That’s an important fact–especially in light of all the “slip-of-the-tongue” moments our president has had recently. Why get off a winning horse?
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