Joe Biden – Donald Trump (Lapresse)
Usa, after a year of Biden … Wall Street “votes” Trump. Skyrocketing Inflation and Freezing Congress: Joe’s Trouble
Declining popularity, difficulties with the US Congress, skyrocketing inflation. The first year of the presidency of Joe Biden it closes with a veil of fatigue on the economic front and also Wall Street seems to have taken note. From 20 January 2021, the day of the inauguration of White House of the current administration, on the same date this year, theS&P 500 it grew by 19.3%, against the 24.1% recorded in the same period since Donald Trump.
USA, FROM TRUMP TO BIDEN: THE REVERSE OF THE MARKETS
The trend of markets does not necessarily reflect that ofeconomy. But what is striking is the sharp turnaround marked by stock lists in the last period. Wall Street has just closed its worst week since March 2020 and is traveling in its worst start of the year since 2016. At the same time i bond yields they have shot up, inflation remains hot and bottlenecks in the supply chain continue to weigh on economic activity.
USA, FROM TRUMP TO BIDEN: HOLD OF THE FED
The mood of the markets it changed on January 5th, when the minutes of the Federal Reserve have shown that theUS central institute could proceed to one monetary tightening wider than expected to counter the rise in consumer prices. The adjustments to the cost of money, in the course of 2022, could even be 4, against the 3 previously expected. The prospect of the rise in interest rates especially penalized the technological sector which since the peak reached at the end of December has lost 11%.
USA, INFLATION RUNS IN THE UNITED STATES OF BIDEN
To weigh on the popularity of Joe Biden among Americans it is above all theinflation. In December, the cost of living index in United States it rose to 7% on an annual basis, the highest figure in the last 40 years. A trend that is felt in the pockets of voters: the gas increased by 27%, the meat by 14%, the cars by 18%. And for too long there White House argued that the phenomenon would only be temporary.
BIDEN AND THE STALL WITH THE US CONGRESS
Biden he also pays for the difficulties in his relations with the american congress. The new administration has been swallowed up by his own party, that one democratic, quarrelsome and divided on the inside. And she was forced to review most of her investment plans. After the complicated green light obtained on the $ 1.2 trillion infrastructure package, the plan for the welfare andenvironment got stuck in the Senate due to opposition from Joe Manchin that it does not intend to vote on the law, deeming its effects on the deficit excessive. On the Democratic Senator from West Virginia Pressures continue to approve at least one abridged version of the plan. But on the opposite front it is the progressive wing of the Asinello that does not intend to accept an excessive downsizing of the provision. Biden, squeezed in the middle, he remains stalled, giving the impression of a president hostage to parliamentary whims. And the mid-term elections could further worsen the situation.
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