### Summary
The chief global economist at Piper Sandler has warned that the U.S. economy is set to worsen before improving, and Americans should save money and maintain their savings. Rising everyday prices, declining manufacturing activity, excessive government spending, and a tight labor market are all contributing factors.
### Facts
- Americans are spending $709 more on everyday goods in July compared to two years ago.
- One-third of U.S. households spent more than 30% of their income on housing in 2021.
- Excessive government spending is blamed for high prices.
- The declining birth rate and closure of maternity wards indicate that Americans are postponing having children.
- Inflation is a major challenge for the economy, and a recession will put pressure on all wealth groups.
- The economist argues that the fiscal stimulus from the Inflation Reduction Act has had a "counterproductive" impact on controlling inflation.
- To see an economic turnaround by 2025, the private sector needs to drive capital spending, while curbing government spending and reforming entitlements is necessary.
- The economist hopes for sustained low inflation and increased labor force participation but emphasizes the need for tough decisions in Washington.
- The economist believes that the U.S. needs to get its fiscal house in order to become a leader in the global economy.
The US economy is in an overheated state, with declining manufacturing activity, high everyday prices, and a tight labor market, causing Americans to feel a significant cost of living crunch and prompting a warning that they should "hunker down" and be cautious with their finances, according to global economist Nancy Lazar. Excessive government spending is blamed for the high prices, and an impending recession is expected to add further pressure on all wealth groups. To achieve economic recovery, Lazar emphasizes the importance of private sector-driven growth and the need for reduced government spending and entitlement reform.
The U.S. economy and markets seem to be in good shape for now, but there are concerns about the potential for problems in the future due to factors such as rising interest rates, supply and labor shocks, and political uncertainties.
Inflation is causing a decline in affordability for average working individuals, with prices on everyday necessities such as groceries, gasoline, and housing rising significantly in the past two years due to government spending and the Fed's money-printing.
The US economy is growing rapidly with favorable conditions for workers, but despite this, many Americans feel pessimistic about the economy due to inflation and high prices, which are driven by complex global forces and not solely under the control of President Biden or Trump. Housing affordability is also a major concern. However, the Biden administration can still tout the economic recovery, with low unemployment and strong economic growth forecasts.
Despite signs of declining U.S. inflation, a majority of Americans, particularly those living in rural areas, are experiencing higher grocery prices under President Biden's economic policy, known as Bidenomics. Concerns about inflation and reliance on partisan news contribute to the perception of economic challenges, despite reports of a strong U.S. economy.
Americans' attitudes toward the US economy are becoming more tentative as consumer sentiment remains steady, reflecting divergent views on the economy's improvements and concerns about inflation, with inflation expectations remaining higher than pre-pandemic levels.
US consumer spending is showing resilience and robust growth, although signs of a slowdown are emerging, potentially related to the public's perception of a deteriorating financial situation due to high inflation and rising interest rates, despite the fact that households still have higher deposits compared to pre-pandemic levels.
The United States' pandemic-induced stimulus measures have led to the printing of nearly 80% of all dollars in circulation since 2020, resulting in severe detrimental effects on the economy, including surging prices and inflation.
Americans facing high prices and interest rates are struggling to repay credit card and auto loans, leading to rising delinquencies and defaults with no immediate relief in sight, particularly for low-income individuals, as analysts expect the situation to worsen before it improves.
The U.S. economy has shown unexpected strength, with a resilient labor market and cooling inflation improving the odds of avoiding a recession and achieving a soft landing, but the full effects of rising interest rates may take time to filter through the economy.
Despite the Israeli shekel being the currency that has weakened the most since the COVID-19 pandemic, Finance Minister Bezalel Smotrich claims that the Israeli economy is showing resilience and stability. However, recent data suggests that Israel's economy is struggling to improve, with slow economic growth and decreased consumer spending. The government's pursuit of judicial reform is also causing concern among international credit rating agencies.
A CNBC survey found that 74% of Americans are feeling financially stressed, with inflation, rising interest rates, and a lack of savings being the top stressors, making it difficult for many workers to contribute to their retirement plans.
Despite positive economic growth and low unemployment rates, several major indicators suggest that the American economy under President Joe Biden is heading towards a recession, with high government deficit numbers indicating possible overspending to prevent a recession before the 2024 election.
Canadian consumer and business confidence has plummeted to its lowest levels since the pandemic, leading to a disconnect between the state of the economy and the public's negative sentiment, which could be attributed to anxiety-inducing inflation and concerns about rising interest rates as well as worsening structural problems such as unaffordable home prices and stagnant GDP per capita.
The US economy is facing a looming recession, with weakness in certain sectors, but investors should not expect a significant number of interest-rate cuts next year, according to Liz Ann Sonders, the chief investment strategist at Charles Schwab. She points out that leading indicators have severely deteriorated, indicating trouble ahead, and predicts a full-blown recession as the most likely outcome. Despite this, the stock market has been defying rate increases and performing well.
Despite increased household wealth in the US, millions of households are struggling financially due to inflation, high interest rates, and rising living costs, which have led to record levels of debt and limited access to credit.
The US is facing a potential financial crisis as the national debt reaches $33 trillion and the federal deficit is expected to double, posing a threat to President Biden's government and potential consequences for American citizens.
A new poll reveals that a majority of Americans have negative views of the economy, citing concerns about rising costs, increased debt, the end of pandemic aid, reduced spending on luxuries, and plans to spend less during the holiday season.
The US economy shows signs of weakness despite pockets of strength, with inflation still above the Fed's 2% target and consumer spending facing challenges ahead, such as the restart of student loan payments and the drain on savings from the pandemic.
A Guardian/Harris Poll survey found that although official figures suggest a strong US economy, two-thirds of Americans feel financially squeezed and find it difficult to be happy about positive economic news, potentially impacting the Biden administration's popularity and the upcoming election in swing states like North Carolina.
The Biden administration's economic policies, known as "Bidenomics," have led to inflation and a decrease in median household income, causing American families to lose ground economically. The media's focus on the poverty rate ignores the negative impact of government welfare programs and inflation on Americans' financial well-being.
A new survey shows that President Biden's claim of improving the economy is not resonating with American voters, with more than twice as many feeling worse off than better off since the pandemic, potentially impacting his chances in the 2024 election.
Americans are facing persistent inflation and a high cost of living, but elite economists and academics are disconnected from the reality and dismissive of the struggles of everyday Americans.
The latest Federal Reserve study reveals that Americans outside the wealthiest 20% have depleted their savings during the pandemic, with cash on hand now lower than pre-pandemic levels, potentially leading to a decline in consumer spending and a potential economic downturn.
Americans are feeling pessimistic about the economy despite the decline in inflation, with rising prices and reduced household income affecting their perception, potentially influencing the outcome of the 2024 presidential election.
The U.S. economy is viewed negatively by most Americans despite positive personal financial situations, with concerns about inflation and credit card debt rising; however, the economy remains a top issue for voters in the upcoming presidential election.
The current state of the consumer is concerning as wages are not keeping up with inflation, excess savings from the pandemic have been depleted, and increasing levels of credit card debt are making it difficult to maintain spending levels, leading to potential economic headwinds.
The mishandling of inflation, economy, and the federal budget in the United States has resulted in excellent saving and investment opportunities, with higher interest rates on Treasury bonds, CDs, corporate bonds, and annuity rates, benefiting those approaching retirement the most.
The US economy is performing better than expected in the midst of pressure from the BRICS alliance, with Bank of America CEO Brian Moynihan predicting a soft landing but cautioning that inflation remains a top concern.
The White House's "Bidenomics" agenda and excessive government spending, coupled with the Federal Reserve's low interest rates, could lead to a catastrophic economic crisis marked by inflation not seen since the Great Depression, putting strains on American families and depleting savings, requiring urgent action to reduce spending and avert disaster.
President Biden criticized the media for focusing on negative stories and claimed that the American people are better off financially, despite overseeing the highest non-pandemic annual deficit in US history and confusing the terms "debt" and "deficit."
The U.S. economy's job numbers appear strong on the surface, with a significant increase in non-farm payrolls, but a closer look reveals weaknesses such as a rise in part-time workers, a decrease in full-time workers, and an increase in people holding multiple jobs, indicating financial struggles for many Americans. Additionally, government jobs, rather than private sector jobs, experienced the largest increase, while manufacturing workers face affordability challenges due to rising prices outpacing wage growth. The Biden administration's economic policies have led to low favorability ratings and increased costs for groceries and gasoline. Home affordability is worsening, with high mortgage rates and negative trends in housing starts and sales. Although the economy shows resilience due to rising corporate profits, Joe Biden's proposed tax hikes threaten business success. The article criticizes Biden's claims about cutting the federal debt and achieving budget surpluses, stating that the budget deficit is expected to reach $2 trillion or more in fiscal year 2023. Overall, the analysis suggests weaknesses and concerns in the U.S. economy under the Biden administration.
Despite positive economic indicators such as job growth and low unemployment, the perception of a healthy economy is overshadowed by the high cost of living, including inflation, rising housing prices, and increased interest rates.
Financial anxiety is becoming increasingly prevalent as inflation rises and the cost of living surpasses wages, impacting mental health and quality of life for billions worldwide.
