According to the poll conducted by Ipsos and ABC News, 69% of US citizens suppose that the current economic situation is critical. Most respondents think that the country’s economy is slumping amid high inflation, which is exerting pressure on the greenback.
The poll revealed that about 70% of Americans fear that the situation could become even worse. According to analysts, it is the highest level in the last 14 years. In addition, most respondents disapprove of measures taken by President Joe Biden to combat surging inflation.
“More than two-thirds (69%) of Americans think the nation’s economy is getting worse - the highest that measure has reached since 2008, when it was 82% in an ABC News/Washington Post poll,” ABC News wrote. At the same time, only 12% think that the economic situation is improving, whereas 18% suppose that “it is essentially staying the same.”
Notably, since the beginning of 2022, the US has been reporting climbing inflation and a drop in GDP. In the first quarter of the year, GDP slumped by 1.6%, whereas in the second quarter, it slid by 0.9%. In June, the local inflation jumped to 9.1% on a yearly basis, reaching the highest level last seen 40 years ago. Data from the US Department of Commerce unveiled that such a tumble was caused by lower business investments and gross fixed capital formation amid the release of oil reserves.
Earlier, President Joe Biden called inflation the “bane” of the US. However, he still believes that it is possible to avoid recession. He even stated that the US was “in a stronger position than any nation in the world to overcome this inflation.” US Treasury Secretary Janet Yellen is eagerly supporting ideas of the head of the state. Not so long ago, she emphasized that consumer and investment spending had risen. What is more, at the end of July, Yellen declared that the US economy was getting back on track, demonstrating stable growth.
US at rising risk of recession
While the US government continues to struggle with worsening inflation, its economy is increasingly at risk of falling into a serious recession.According to recent studies, most analysts expect the United States to face another large-scale economic crisis.
14:48 2022-10-04 UTC+00
Oil shortage to cause food crisis
Following the energy crisis, the world may face a food crisis. Notably, the reason for both crises is the same – the ban on Russian oil imports. Analysts warn that the boycott of Russian oil could trigger a food crisis in many European and other states.The Times has recently unveiled a gloomy forecast of the Bank for International Settlements (BIS).
14:32 2022-10-04 UTC+00
Joe Biden calls on oil firms to bring down prices
In an attempt to tackle surging gasoline prices in the country, US President Joe Biden decided to ignore the basic laws of economics and demanded that oil companies reduce their selling prices.
14:14 2022-10-04 UTC+00
Fed statements affect global economy
The US Federal Reserve System proved to be the world's most influential financial regulator. Its influence is so powerful that just one statement is enough for global economic shifts, even without the use of any financial instruments. CNBC analysts confirm that Fed’s statements have such a far-reaching effect.
14:04 2022-10-04 UTC+00
Fed raises rates once again to combat inflation
The US Federal Reserve has raised its benchmark interest rate for the third consecutive time and is expected to do the same by the end of the year. This measure is supposed to help reduce global prices of oil, gas, and metals as well as other goods. The thing is that commodities are denominated in US dollars and most international settlements in the commodities markets are carried out in USD.
13:31 2022-10-04 UTC+00
US risks losing its oil buffer
The efforts of the Biden administration to reduce global commodity prices could go in vain as the United States risks losing its cushion reserved for oil shocks, The Wall Street Journal reported.In September, the Strategic Petroleum Reserve (SPR) in the United States decreased by 7 million to 427 million barrels, the lowest since 1984, according to the Energy Information Administration (EIA).
05:13 2022-10-03 UTC+00