{"id":542205,"date":"2023-01-22T18:30:00","date_gmt":"2023-01-22T15:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-economic-headwinds-are-posing-a-challenge-to-biden\/"},"modified":"2023-01-22T18:30:00","modified_gmt":"2023-01-22T15:30:00","slug":"how-economic-headwinds-are-posing-a-challenge-to-biden","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-economic-headwinds-are-posing-a-challenge-to-biden\/","title":{"rendered":"#How economic headwinds are posing a challenge to Biden"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2719969f1da\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2719969f1da\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-economic-headwinds-are-posing-a-challenge-to-biden\/#How_economic_headwinds_are_posing_a_challenge_to_Biden\" >How economic headwinds are posing a challenge to Biden<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/how-economic-headwinds-are-posing-a-challenge-to-biden\/#Big_Tech_layoffs\" >Big Tech layoffs\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/how-economic-headwinds-are-posing-a-challenge-to-biden\/#Debt_ceiling_fight\" >Debt ceiling fight<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/how-economic-headwinds-are-posing-a-challenge-to-biden\/#Inflation_and_the_Fed\" >Inflation and the Fed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/how-economic-headwinds-are-posing-a-challenge-to-biden\/#Consumer_spending_is_slowing\" >Consumer spending is slowing<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"How_economic_headwinds_are_posing_a_challenge_to_Biden\"><\/span>How economic headwinds are posing a challenge to Biden<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/bidenjoe_011223ap-andrew-harnik_biden-economy.jpg?w=900\" \/><\/p>\n<div>\n<p>Economic headwinds are posing a challenge to President Biden as he readies a possible reelection bid during which jobs and the economy are likely to take center stage.<\/p>\n<p>The White House has sought to highlight the resilience of the U.S. economy in the face of high inflation, rising interest rates and mounting layoffs across the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>, real estate and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> sectors in making arguments for Biden\u2019s economic stewardship. <\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>Inflation had been expected to be a serious headwind for Democrats in last November\u2019s midterms, but instead the party exceeded expectations by gaining a Senate seat while keeping its House losses to a minimum. <\/p>\n<p>New threats are now on the horizon even as the White House hopes for a soft economic landing from Federal Reserve efforts to lower inflation and prevent a recession. <\/p>\n<p>Here are some of the economic challenges confronting Biden. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Big_Tech_layoffs\"><\/span><strong>Big Tech layoffs\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Mounting layoffs at big technology companies \u2014 many of which drastically expanded operations throughout the pandemic \u2014 have prompted a parade of worrying headlines and concerns among some investors.<\/p>\n<p>Major tech companies have laid off more than 200,000 workers over the past four months, the majority of which are for high-paying, white-collar jobs. Amazon, Microsoft and Google in particular announced tens of thousands of layoffs this week.<\/p>\n<p>The White House said this week that Biden is monitoring the layoffs and is aware of the impact it has on workers and their families. <\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>They also argued that the layoffs overall are at a low level, pushing back on the idea that the decisions by Microsoft and Google represent a major concern for the economy or workers in other industries. <\/p>\n<p>\u201cThe U.S. economy continues to grow \u2026 and the unemployment is a 50-year low. So leading analysts have publicly stated that they do not believe the recent layoffs in the tech industry are indicative of trends in the broader economy,\u201d press secretary Karine Jean-Pierre said on Friday.\u00a0<\/p>\n<p>Only about 190,000 Americans filed new first-time claims for unemployment insurance in the week ending Jan. 14, according to Labor Department data. Layoffs on the whole remain well below average levels from 2019, when new weekly jobless claims regularly topped 200,000 or more.<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>Robert Frick, corporate economist at Navy Federal Credit Union, said the high demand for workers in other sectors has helped those laid off from big tech firms and other hard-hit sectors find work quickly.\u00a0<\/p>\n<p>\u201cThe labor market is still so tight that many tech workers, and workers with other skills, are sn<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed up well before they need to collect an unemployment check,\u201d Frick explained in a Thursday analysis.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Debt_ceiling_fight\"><\/span><strong>Debt ceiling fight<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The White House is standing firm that it will not negotiate with Republicans in Congress who are demanding spending cuts in exchange for raising the nation\u2019s debt ceiling. <\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>The White House has pointed to numerous clean debt ceiling hikes in recent years, including when Donald Trump was president and Republicans controlled Congress, as precedent for why House Republicans shouldn\u2019t demand conditions.<\/p>\n<p>Negotiations may be inevitable given the GOP\u2019s control of the House and the fact that Democrats need Republican votes in the Senate to get past procedural obstacles. <\/p>\n<p>The stakes are high, with experts warning that a default would cause deep pain to the economy. <\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>The Treasury Department has already enacted \u201cextraordinary measures\u201d that will allow the U.S. to avoid a default over the next few months, but some kind of deal is likely to be needed in June. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Inflation_and_the_Fed\"><\/span><strong>Inflation and the Fed<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Fed\u2019s rapid interest rate hikes have helped bring inflation down from a 9.1 percent annual rate in June to 6.5 percent in December, according to Labor Department data released last week.\u00a0<\/p>\n<p>The steady decline of inflation and the slowing of the U.S. economy have pushed the Fed to slow down its interest rate hikes. The Fed is expected to hike its baseline interest rate range by 0.25 percentage points on Feb 1., which would be its smallest rate hike since March 2022.<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<p>Some experts and investors think the Fed has already done enough to keep annual inflation moving down to its target of 2 percent and should be careful about weighing down the economy with even higher rates.<\/p>\n<p>\u201cI think there is all the room in the world for the Fed to really reduce its pace of interest rate increases. Honestly, I\u2019d go to zero,\u201d said Josh Bivens, research director at the Economic Policy Institute, a left-leaning think tank.<\/p>\n<p>But Fed leaders have made clear that they are not yet done hiking rates and would rather risk driving the economy into a recession than losing control of inflation.<\/p>\n<aside class=\"ad-unit ad-unit--mr7_ab\"><\/aside>\n<p>\u201cYou just can\u2019t declare victory too soon, right? If you back off \u2026 while inflation is still elevated, it\u2019ll come back ever higher the next time, meaning you have got to do even more damage to take control of it,\u201d said Tom Barkin, president of the Federal Reserve Bank of Richmond, in a Tuesday interview on Fox Business Network.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Consumer_spending_is_slowing\"><\/span><strong>Consumer spending is slowing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Many Americans are finally reaching their breaking points after two years of high inflation.\u00a0<\/p>\n<p>Retail sales fell in both November and December, according to data released Wednesday by the Census Bureau, even amid the traditionally busy holiday shopping season. Factory output has fallen as stores struggle to clear out growing inventories, and the nearly yearlong slump in home sales is also sapping momentum from the economy.<\/p>\n<p>While lower consumer demand is essential to bringing inflation down, a steady decline in spending could keep slowing the economy toward a recession. Roughly two-thirds of U.S. economic activity is driven by consumer spending, but many American households have now burnt through pandemic savings and are leaning on credit cards to keep pace.<\/p>\n<p>\u201cWe are seeing some of the imbalances in supply and demand of the past two years that led to high inflation start to unwind. Declines in retail sales, after years of outsized gains in both prices and goods, are a good sign for getting back to normal,\u201d wrote Claudia Sahm, a former Fed research director, in a Friday analysis.<\/p>\n<p>\u201cAnd it\u2019s a sign of how we are walking a tightrope of lower inflation, keeping jobs, and avoiding a recession,\u201d she wrote<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/policy\/finance\/3821506-how-economic-headwinds-are-posing-a-challenge-to-biden\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How economic headwinds are posing a challenge to Biden Economic headwinds are posing a challenge to President Biden as he readies a possible reelection bid during which jobs and the economy are likely to take center stage. The White House has sought to highlight the resilience of the U.S. economy in the face of high&#8230;<\/p>\n","protected":false},"author":1,"featured_media":542206,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/bidenjoe_011223ap-andrew-harnik_biden-economy.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[134344,90482,71525,134354,70289,134446],"class_list":["post-542205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-administration","tag-house","tag-national-security","tag-nexstar-media-wire-news","tag-senate","tag-sunday-talk-shows"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/542205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=542205"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/542205\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/542206"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=542205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=542205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=542205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}