The Political Press Is Starting To Get Spooked

[J.J.Gibbs]

The Political Press Is Starting To Get Spooked


That Biden's economy is looking increasingly wobbly may not be news to ZeroHedge readers, but it is apparently starting to dawn on America's political class.





In Politico, Ben White worries that corporate CEOs will pull back on investment in light of uncertainty about the economy, sparking a self-reinforcing cycle of economic weakness that will doom the Dems in November:



Corporate America’s concern about the future is also reflected in polling data showing consumers losing confidence in the economy and in the ability of President Joe Biden and the Democrats to manage the nation’s finances — especially on inflation, now at a four-decade high.



That skittishness also suggests investment could sag further in the second quarter and beyond, slowing growth, limiting further employment gains and making the incumbent party’s electoral job even harder.



Uppermost in CEOs minds? The impact of higher inflation and continued disturbance in their ability to deliver their products.



White saves his scariest quotes for last, from Goldman Sachs CEO David Solomon and Baird analyst Ross Mayfield:



“While U.S. unemployment levels are low and wages are increasing, inflation is the highest it’s been in decades,” David Solomon, CEO of Goldman Sachs, said on the company’s April 14 earnings call. “We’re seeing new stress on supply chain and commodity prices, and U.S. households are facing rising gas prices as well as higher costs for food and housing. We’ve also seen an increased risk of stagflation and mixed signals on consumer confidence.”



The consumer, no longer enjoying vastly increased federal benefits, may not be able to keep things afloat much longer.



“If inflation continues to rise like this and wages don’t rise as fast, then something is going to roll over,” said Ross Mayfield, investment strategy analyst at money management firm Baird. “The consumer will not survive it.”

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