Harris’ Affordable Living Approach Fuels Deflation Fears
“The potential of DOGE dividends to aid American households in clearing existing debt and securing their financial future poses an intrinsic threat of triggering a deflationary cascade in the nation’s economy. Vice President Kamala Harris’s approach to enable affordable living, part and parcel of which involves depressing the prices of everyday essentials, child tax grants, and financial leeway for first-time house purchasers, simply furthers this concern. This is especially noticeable in the light of the Biden administration’s most recent raise offering, which fails to compete with the 4.6% and 5.2% increases delivered at the ends of 2022 and last year respectively.”
“Nobel Prize recipients have voiced their concern that given a re-election of ex-president Donald Trump, a swift inflationary shift may bring instability to the national economy. Their caution comes in the midst of rising national debt and delayed payments along with fresh revelations of escalated wholesale inflation, all of which point towards impending interest rate hikes.”
“The Federal Reserve, wielding its influence as the globe’s premier central banking institution, has a responsibility to regulate this borrowed expense borrowing cost riddle that’s interrogating economies worldwide. Earlier forecasts predicted that the Fed would commence tapering its stimulus package by year’s end, implying that the US economy is on the cusp of being able to operate without the crutch of financial aid.”
“Yet, the market’s optimism was shattered when the Federal Reserve suggested that a full recovery of the world’s principal economy was in the distant future. Moreover, the consensus among economic thinktanks is that the ongoing pandemic, which has notably erased trillions from the stock market, is a harbinger for a worldwide recession.”
“Europe, in the wake of China, has unexpectedly surfaced as the most notable hotspot for the virus, sending the death toll on the continent soaring to unprecedented levels over a single weekend. This escalating international concern has been reciprocated in the seemingly incessant downturn of the world’s stock markets.”
“Moving into 2020, the trading landscape appeared to offer a ray of hope. Current market sentiments, however, are marred by fears that the continuous spread of the virus could dampen global economic prospects, a fear that triggered a red close on Wall Street after Tuesday’s record highs.”
“Further economic hardship comes in the form of anemic global growth combined with the incessant trade conflicts instigated by President Trump, both of which have collectively struck US exports. Amid all of this, the president has suggested Powell, aged 64, as the replacement for the incumbent Federal Reserve chair.”
“Despite the absence of formal confirmation, reports are circulating that the president has chosen the currently serving Fed board member to take the helm at the US central bank. This comes in conjunction with robust sales of durable goods like cars, a phenomenon illustrated in official data.”
“A classified report has indicated that trade discussions between London and Brussels might kick-off soon, contradicting statements that Brexit negotiations were at a standstill. Simultaneously, the central banks in the US, UK, and Europe have hinted that they may soon conclude the liberal monetary policies that have so far pumped trillions of dollars into their respective economies.”