President Joe Biden’s economic fixes have begun to show up for voters. He understands that people are concerned about inflation, the price of groceries, and the price of gasoline. At the same time, they resent and resist the GOP politicians’ attempts to make medical decisions for women. So even though the president has been juggling a handful of difficult problems in this environment, his efforts have begun to show them that he had not forgotten their concerns.
As President Biden promised, stocks shot up Wednesday due to “better-than-expected” economic information. And the concerns over a recession declined with CNBC reports five days earlier. President Biden gave evidence that America was not in a recession at that time:
‘Let me just give you what the facts are in terms of the state of the economy. Number one, we have a record job market, and record unemployment of 3.6%, and businesses are investing in America at record rates.”
Then he gave the audience the news that several corporations had plans to build back in the good old U.S.A. before summing it all up:
‘that doesn’t sound like a recession to me.’
One of the problems has been lackluster news days, so news outlets have been using dire warnings of a recession for dramatic effect. By doing, so they could have actually impacted the possibility of a recession occurring. Fortunately, the news of the swing state primaries moved them off this point. And as our president predicted, as there was great economic news as well.
The Dow Jones shot up 336 points, according to the last figures from CNBC;
- ‘That comes out to a 1.04 percent increase.
- The S&P 500 gained 1.25%, and
- ‘[T]he Nasdaq Composite increased 2.11%, boosted by rising tech stocks.’
Just look at what some stocks have been doing:
‘Moderna surged more than 15%, and CVS Health gained nearly 5% after reporting earnings beats.’
The St. Louis Federal Reserve President James Bullard told CNBC that he did not see America in a recession now. And the recent rate hikes he imposed and will continue to impose should slow down and halt any possibility of a recession. Bullard said during a live Squawk Box show:
‘We’re going to have to see convincing evidence across the board, headline and other measures of core inflation, all coming down convincingly before we’ll be able to feel like we’re doing our job.’
San Francisco Fed President Mary Daly pointed out that they were still working to beat inflation. But good economic data were behind the stocks shooting upward. Take for instance the “ISM non-manufacturing purchasing managers index showed a surprise rebound.”
Founder of Bokeh Capital Partners Kim Forrest commented on that surprise rebound:
‘When we get a nice surprise like this it readjusts your thinking, so that’s why I think the market is taking off. This is just more information telling us that maybe things just aren’t as bad as we forecast.’
The stock markets do rely on data, facts. However, they are dramatically affected by emotions. Even House Speaker Nancy Pelosi’s (D-CA) trip to Taiwan affected them. President Biden made certain House Speaker Nancy Pelosi had all the latest facts about the fractious China-Taiwan relationship, then he talked to the President of China Xi Jinping. At no time did he phone the Speaker and urge her to refrain from her scheduled trip to Taiwan. Instead, he respected her decision. Women noticed.
Although other politicians have visited Taiwan, for some reason the Speaker going hit a nerve in China. It warned her not to come. Then, the markets dropped even lower “after three Federal Reserve presidents hinted that further rate hikes would be necessary.”
Wednesday floor traders expected more second-quarter data. And investors will turn toward the July nonfarm payrolls report at the end of the week.
All this optimism as President Biden recovers from rebound COVID.
In Gloria Christie Reports & Three White Lions Substack newsletters, Gloria Christie includes her week’s most important news/ commentary stories in the liberal online newspaper The Bipartisan Report. Gloria Christie Report her newsletters are for people on the go. Written in her own unique style with a twist of humor in a briefer version of Bipartisan Report. Christie’s Mueller Report Adventures In Bite-Sizes a real-life compelling spy mystery (in progress). Find her here on Facebook. Or at Three White Lions her book on Amazon Kindle Vella.