US rattled by 40-year-high inflation rate, Fed to get aggressive with interest hikes

Read Time:3 Minute, 16 Second

Inflation, soaring gas prices, and the increase in food prices is that all obstacles are piled against Democrats because President Joe Biden’s ranking continues to fall since September last year until now. The worst is 33 percent in September 2021, bad for incumbent presidents in the first year of government. But the law of weapons, and executive orders about the rights of abortion seems to have tilted a slight balance with a ranking of more than 44 percent.

The voters see a bad economy, even if they are good, said the New York Times/Siena’s opinion. There is extraordinary pessimism apart from the resilience of the labor market, and that can be expensive for Democrats, and the economy.The fastest inflation in 40 years makes Americans feel very bad about the economy, even because of their own finances, so far, surviving is relatively good. Only 10 percent of registered voters say the US economy is “good” or “very good”, according to a poll – the extraordinary level of pessimism when wages rise and the unemployment rate is close to 50 years. But the cost of food, gas, and important things that increase rapidly is to destroy salary increases and erode living standards.

American voters took a gloomy view of the country’s economic status was actually bad news for President Biden and Democrats Congress towards the middle semester election, given that 78 percent of voters said inflation would be “very important” when they headed to the voting site. A Biden voter in 2020, Christina Simmons has more than doubled her salary in recent years but felt she was lagging behind. He plans to choose a Republican party in the midst of semester. And that is not a pleasant trend for Democrats.

New York Times/Siena College’s opinion from 849 voters registered from 5 to 7 July this year said TT could also be bad news for the economy. One of the consumer sentiment indexes that had been running for a long time reached the lowest record in June, because CPI exploded to 9.1 percent, and other surveys showed that the United States were increasingly nervous about their own finances and the economy, in general.

Economists have consumer sentiment, which can be easily influenced by media narratives and indicators that do not represent a wider economy, such as the price of certain food ingredients or deficiency of certain goods. At least in theory, economic pessimism can be self -fulfillment, because consumers withdraw their expenses, which lead to layoffs and, in the end, for recession, polls reveal.

Simmons grew poor and had worked hard to give his 7 -year -old son a better life. He has been up in a ranks in the health insurance company where he worked near Jacksonville, Florida, and has more than double his salary over the past few years. But he felt as if he was left behind. “I work hard to get to my place so I can take a vacation with my child,” he said.

Simmons, 30, can still meet the needs, partly because he can save money on gas by working remotely. But he was worried about what could happen if the economy slowed down and endangered his work – one of the consequences of being promoted, he said, was that he was further than the customer, making him more vulnerable to layoffs. He has cut simple luxury, such as gym membership and night with friends, to build his savings. “I save money to stand guard if it gets worse,” he said.

Is inflation bad? Indeed, but generally will depend on the situation. Rapid price increases in mantra problems, the economy suggests, but moderate price profits can cause higher wages and work growth.How exactly is inflation hit the poorer part in the community? Inflation can be very difficult to bear the poorer household because they spend most of their budget for needs such as food, housing and gas.