In this context, a poll carried out by the “Fox News” network showed pessimistic estimates of Americans as to the future of their country’s economy, which “is going from bad to worse”. Among the most striking results included in the survey: Inflation remains the main concern of voters. 83% see the economy in a weak or bad state. 66% described their personal financial situation as “poor”, compared to 58% in a previous poll last December. 90% are concerned about inflation rates…and 88% are concerned about the future of the country, given these conditions.
great challenges
However, VI Markets Executive Director Ahmed Moati does not believe the survey results accurately reflect general sentiment in US markets, given that the survey was conducted on a sample of around a thousand participants, and does not necessarily reflect the general picture, as he said.
Moati points out, in statements exclusive to the “Sky News Arabia Economy” site, that “the American economy is going through very great challenges, there is no disagreement on this… but on the other hand, there is there are some brilliant things that are reassuring, including, for example, advances in artificial intelligence.” , which would be a strong turn, help pump in more funds and maintain US leadership in the global economy.
The economic analyst cites what Nvidia, Microsoft, Apple and Alphabet have achieved in this context, in terms of initiative and leadership. At the same time, he mentions a number of immediate positive factors, including the resolution of the debt ceiling issue (..).
As a result, Moati says, “I don’t think the US economy will get any worse. It may go through a phase of various challenges, but it is able to overcome it, and history has recorded more than once a cluster of crises. which have been overcome”, explaining that in about a year and a half, the policy of monetary tightening was followed with many consequences. In addition, the Ukrainian crisis began to coexist to a large extent with the world, and therefore the Things seem, from his perspective, largely stable with respect to the US economy and its future prospects.
The CEO of VI Markets concludes his speech by saying: “It is true that there are still challenges, but the scene does not look bad. The US economy is strong, and if it suffers a recession, it will be a mild recession that will be defeated later.”
“Fox News” quoted pollster Democrat Chris Anderson – who conducted the poll along with Republican Daron Shaw – as saying, “Inflation is an insoluble economic problem, and therefore it is an insoluble political problem…and As long as inflation puts pressure on wages, Biden will struggle to prove that his financial policies are helping people.”
Inflation remains high in the United States despite the central bank’s long campaign to raise interest rates. The Fed’s favorite inflation measure unexpectedly accelerated in April. The personal consumption expenditure price index rose 4.4% in April, from 4.2% in March, against an expected slowdown to 3.9% (according to Commerce Department data). On a monthly basis, the index rose as expected by 0.4%, after rising 0.1% in March. The price index for basic personal consumption expenditure, which excludes volatile food and energy costs, rose 4.7% year on year in April, against a forecast of 4.6%, while increasing 0.4% month-on-month, against forecasts of 0.3%.
The results of the survey (which was conducted May 19-22 and included interviews with 1,001 registered voters across the country who were randomly selected from the voter roll) showed great concern in the United States about to the health of the banking system, as well as the ability of citizens to pay their bills. .
It also showed negative ratings of the performance of US President Joe Biden’s administration, as 20% said Biden’s policies helped them…and 48% saw these policies “harm their families.” (But overall, 42% approve of Biden’s job performance.)
Temporary crisis… and general pressures
For his part, the former adviser to the US State Department, Hazem Al-Ghabra, indicates in exclusive statements to “Sky News Arabia Economy” that the results of the poll – although it is a media poll – generally reflect how many Americans feel today for more than one reason. Considering that there are high rates of inflation and deflation in the economy, which is artificial deflation to control inflation in the first place.
And he continues: “Americans are seeing that their savings are shrinking in view of the rise in prices, and that many large companies are reducing the number of their employees and wages are not being increased, and therefore people are not stable in their lives. work at that time. stadium… in addition to the debt issue which worries Americans, because the public debt In the end, it is the American citizen who is responsible for it, whether today or tomorrow, and future generations who will pay for it the price.
But he goes on to say, “You cannot speak of the United States as a single country in this matter, especially since the world is under broad economic pressure, even China, whose economy was growing like a clock, now faces growth pressures. .. if we carry out this survey in any other country.” Its results will be the same and perhaps worse (..)”.
He believes that “this sentiment expressed by people is not surprising in light of these poor conditions globally”, adding: “I don’t think there is a real crisis in America, because market indicators and the general indicators do not give us the shape of a major crisis, but rather it is a temporary crisis and its factors are clear.” The government is aware of the problem and knows the solution and is working on it.
Al-Ghabra talks about what he described as “campaigns by foreign countries”, as he put it, to suggest the turmoil in the US economy and the coming end of the golden age of the United States, explaining at the same time that the internal parties are also trying to use the economy to intimidate the American voter, and according to these internal and external pressures “A lot of people think that there is a big crisis”.
slowing inflation
Speaking of the internal pressures cited by Al-Ghabra, political and economic analyst Mahdi Afifi, from Washington, indicates that those whom he calls “Trumpists” in relation to former President Donald Trump “are trying to spoil everything that President Joe Biden”.
And he added, in statements exclusive to the Sky News Arabia Economy website: “Inflation rates are slowing to less than 4.5%, on top of unemployment rates, which are around 3, 5%, so that a limited number of people apply to regular companies (one person for two jobs), explaining that “prices have gone up, but they are still affordable, considering that the American citizen is used to a type of high luxury, and therefore the rise did not significantly lead to severe exhaustion for the citizen, as has happened in other countries.”
And he continues, “The reality of the economy indicates that the United States is in a better position than any major economy,” referring to both votes supporting Democratic Party policies, including support for Ukraine , as well as votes supporting social programs offered by the party.
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