The New York Post
"Yellen pitches Bidenomics in Beijing — making America a laughingstock"
By Social Links for Philip Pilkington
Published April 11, 2024
Imagine your family finds your cooking so revolting, they refuse to eat it — and in response you decide it’s time to take a plate over to your neighbor’s house.
This is precisely what the Biden administration is doing with its economic platform.
It’s no secret Americans are sick of Bidenomics.
A recent Economist/YouGov survey showed 29% of voters are worried more about the economy and inflation than any other issue.
Only 22% of black Americans, 13% of Hispanics and 18% of young adults — all key would-be Biden voters — think they are better off financially than they were a year ago.
The verdict is in: Voters do not like what Joe is cooking.
Rather than reflect on these numbers, Treasury Secretary Janet Yellen found herself in China this week offering a round of slops to the locals.
Although China rolled out the red carpet for Yellen in Beijing and Guangzhou, both the Chinese and the Americans ultimately saw her visit as a failure.
Looking under the hood, it’s not hard to see why.
No matter what you think about China’s trade strategies, it is obvious they are proving very successful for the Chinese.
European car manufacturers are terrified of a tsunami of cheap, newly high-quality Chinese electric vehicles about to wash over their shores.
America seems to feel the same way about Chinese EVs, having already imposed a 27.5% tariff on them.
Yet despite Western aversion to these products, they are flooding the rest of the global market.
In 2022, China itself accounted for 60% of EV purchases and provided 35% of global EV exports — up from 4.2% in 2018.
Despite negative headlines throughout 2023, the Chinese beat their growth target of 5% for the year.
In contrast to many Western countries, they achieved this economic growth with very low inflation.
Inflation at the end of 2023 was 3.4% in both America and Europe — in China, inflation for the year came in at -0.3%.
Considering these numbers, most people would see Yellen heading over to the Middle Kingdom to give economic advice as a hard sell.
But Yellen was undeterred.
She informed the Chinese their trade practices are too aggressive and their products too cheap.
While this may be true, the alternative advice she gave them was a stretch too far: Yellen said they should embrace Bidenomics.
America’s treasury secretary told the Chinese Communists they should focus less on their competitiveness and engage in more government expenditure to generate economic growth.
News reports suggest Yellen even tried to sell the Chinese on stimulus checks — or “stimmies,” as they came to be known during the pandemic.
This is very strange advice, as the Biden “stimmie” program is now widely thought to be the first in a series of policy blunders that led to the outburst of inflation that’s made the president so unpopular.
Put yourself in the shoes of the Chinese here: Yellen’s Treasury has created a cost-of-living crisis in America, and now she wants to Chinese to sign on to her funny-money program.
It was only a decade ago that the so-called Washington Consensus encouraged other countries to embrace free-market economics and improve their competitiveness.
Now Yellen and the gang are traveling the world trying to sell the economic equivalent of magic beans.
No doubt there are problems with China flooding Western markets with its cheap goods.
The question of how to address this is a large one, but surely the answer involves trying to recreate competitive industries in Western countries.
These countries, emerging from painful inflation, have had more than enough doses of Dr. Yellen’s Magic Money Juice.
Trying to peddle the same snake oil on the world stage is, frankly, an embarrassment to the United States, which used to pride itself on sound economic management.
Washington has decided firmly, on a bipartisan basis, that it no longer wants to rely on China for cheap imports.
Policymakers are now laser-focused on trying to bring jobs back to American shores.
This is a laudable goal, but there are better and worse ways of doing it.
Creating a carnivalesque roadshow in which the US treasury secretary travels the world promoting the same harebrained economic policies that have led to so much economic pain for the average American is not a good way to go about this.
If the Chinese had signed on for regular doses of Yellen’s snake oil, it might hobble their economy and give America the edge on the world stage.
But it’s safe to predict the Chinese will “just say no” to importing Bidenomics into Beijing.
Philip Pilkington is a macroeconomist and investment professional.
https://nypost.com/2024/04/11/opinion/y ... hingstock/
AMERICA'S FIGHTING BULLDOG JOE BIDEN
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
FOX News
"Democrat claiming 'inflation rates are down' interrupted by higher than expected inflation report"
Story by Lindsay Kornick
12 APRIL 2024
Reality collided with a Democratic congressman’s efforts to defend President Biden’s record on inflation Wednesday morning.
South Carolina Rep. James Clyburn spoke to MSNBC’s "Morning Joe" regarding a recent focus group accusing the president of "gaslighting" them on the economy.
Though Clyburn acknowledged that people are concerned over inflation, he said inflation rates have largely come down since Biden took office.
"I do believe, just from my own observations, from the conversations I have had with people, there are concerns about things like inflation, but what we’ve got to get them to see is that inflation today is about 40% of what it was when Joe Biden took office."
"And so, the inflation rates are down, and people’s incomes are up."
"Unemployment is on the decrease."
"And although we see the prices at the stores costing more money, people are, in fact, earning greater incomes," Clyburn said.
As he spoke, co-host Mika Brzezinski interrupted him to report on the news that inflation rose faster than expected.
"So I will validate that, I think the disinformation out there is distorting the entire process, I think social media doesn’t help, but there’s also a lack of validation that these voters feel, and I’m going to bring in Andrew Ross Sorkin right now because we just got breaking news, the consumer price index increased at a faster than expected pace last month, a signal that inflation remains stubbornly high," Brzezinski reported.
Right before the news broke, Clyburn decried the "disinformation" regarding inflation.
"So what we’ve got to do is make sure that people see the policies of the Biden administration, how they affect their everyday lives, and get them to see in his policies that which is real, not what they may hear on social media."
"One of the focus-group people talked about social media and the misrepresentation, disinformation, all of those things are out there and that’s the battle that we have to fight, and we’ve got to do a better job of fighting it more effectively," Clyburn said.
The Labor Department said Wednesday that the consumer price index, a broad measure of the price of everyday goods including gasoline, groceries and rent, rose 0.4% in March from the previous month.
Prices climbed 3.5% from the same time last year, above the 3.2% figure recorded in February.
The segment referred to a focus group of undecided voters from battleground states who unanimously agreed former President Trump’s economic policies were better than Biden's and even laughed at Biden claiming otherwise.
Michigan voter Omar, who previously voted for Biden in 2020, said, "The point is, Biden needs to hear the people, because when he's talking about the economy doing stellar, he's talking about the stock market."
"He's not looking at homelessness or joblessness."
"He's not…thinking about how much it costs to go to the grocery store, and he's gaslighting literally everyone in the process."
https://www.msn.com/en-us/news/politics ... a494&ei=45
"Democrat claiming 'inflation rates are down' interrupted by higher than expected inflation report"
Story by Lindsay Kornick
12 APRIL 2024
Reality collided with a Democratic congressman’s efforts to defend President Biden’s record on inflation Wednesday morning.
South Carolina Rep. James Clyburn spoke to MSNBC’s "Morning Joe" regarding a recent focus group accusing the president of "gaslighting" them on the economy.
Though Clyburn acknowledged that people are concerned over inflation, he said inflation rates have largely come down since Biden took office.
"I do believe, just from my own observations, from the conversations I have had with people, there are concerns about things like inflation, but what we’ve got to get them to see is that inflation today is about 40% of what it was when Joe Biden took office."
"And so, the inflation rates are down, and people’s incomes are up."
"Unemployment is on the decrease."
"And although we see the prices at the stores costing more money, people are, in fact, earning greater incomes," Clyburn said.
As he spoke, co-host Mika Brzezinski interrupted him to report on the news that inflation rose faster than expected.
"So I will validate that, I think the disinformation out there is distorting the entire process, I think social media doesn’t help, but there’s also a lack of validation that these voters feel, and I’m going to bring in Andrew Ross Sorkin right now because we just got breaking news, the consumer price index increased at a faster than expected pace last month, a signal that inflation remains stubbornly high," Brzezinski reported.
Right before the news broke, Clyburn decried the "disinformation" regarding inflation.
"So what we’ve got to do is make sure that people see the policies of the Biden administration, how they affect their everyday lives, and get them to see in his policies that which is real, not what they may hear on social media."
"One of the focus-group people talked about social media and the misrepresentation, disinformation, all of those things are out there and that’s the battle that we have to fight, and we’ve got to do a better job of fighting it more effectively," Clyburn said.
The Labor Department said Wednesday that the consumer price index, a broad measure of the price of everyday goods including gasoline, groceries and rent, rose 0.4% in March from the previous month.
Prices climbed 3.5% from the same time last year, above the 3.2% figure recorded in February.
The segment referred to a focus group of undecided voters from battleground states who unanimously agreed former President Trump’s economic policies were better than Biden's and even laughed at Biden claiming otherwise.
Michigan voter Omar, who previously voted for Biden in 2020, said, "The point is, Biden needs to hear the people, because when he's talking about the economy doing stellar, he's talking about the stock market."
"He's not looking at homelessness or joblessness."
"He's not…thinking about how much it costs to go to the grocery store, and he's gaslighting literally everyone in the process."
https://www.msn.com/en-us/news/politics ... a494&ei=45
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
POLITICO
"Biden’s risky new bet: the stock market - The president and his aides have begun touting stock market gains, a messaging shift that makes some Democrats uneasy."
By JASPER GOODMAN
02/14/2024 09:17 AM EST
President Joe Biden is starting to sound a little more like his predecessor.
He wants you to know how great the stock market is doing under his watch.
It’s a messaging shift that makes some Democrats uneasy, given the likelihood of market volatility and the inequality among investors.
It’s also a break from Biden’s own stance during the last election when he knocked then-President Donald Trump for focusing on the strength of stocks.
“He thinks the economy is doing well if the Dow Jones is doing well,” Biden said on X, formerly Twitter, in October 2020.
“Believe it or not, Mr. President, most Americans don’t live off the stock market.”
Fast forward to last Saturday, when Biden used X to tout “good news” for folks to start the weekend: “The stock market going strong is a sign of confidence in America’s economy.”
Tuesday’s steep drop in stocks, triggered by unexpectedly strong inflation data, illustrated the risks in the approach.
The new messaging comes as poll after poll shows deep skepticism from voters on Biden’s handling of the economy.
“If I were there, I’d be telling the president: ‘Stock markets go up, but stock markets also go down,’” said Jason Furman, a top economic adviser to former President Barack Obama.
“You’re taking a risk if you’re resting too much of your case on something that could prove ephemeral.”
Trump not only took credit for the stock market’s run during his administration, but he’s also tried to argue that the most recent surge can be attributed to anticipation of his return to office.
Jared Bernstein, the chair of the White House Council of Economic Advisers, said in an interview that the administration’s recent posts trumpeting the stock market were not a response to the former president.
Bernstein, a long-time Biden aide, said it’s “just our team’s substantive take on a set of forces that look like they’re in play in this rally.”
White House communications director Ben LaBolt posted on X Saturday that “Americans are going to be happy with their 401(k) statements,” a message that Bernstein reposted and cheered on from his own X account.
“No one’s saying anything about where the market is headed,” Bernstein said on a call Monday, adding that the messaging push was about the rally over the past few months.
“We think some of the forces behind the rally are those that this president has helped to put in play.”
He pointed to reversed recession expectations, a bright domestic investment outlook driven by Biden’s legislative agenda, and the strength of the U.S. economy compared to global competitors.
And to be sure, the president’s speeches focus largely on the real economy, not the markets.
When politicians try to take credit for rising stocks, there’s not only the risk that share prices will fall.
It also draws attention to the fact that the market delivers the biggest benefits to those who are already well-off.
The wealthiest Americans are far more likely to hold stocks than those with lower incomes.
Josh Bivens, chief economist at the left-leaning Economic Policy Institute, said stock market gains are “really about how the wealthiest are faring” and are “mostly irrelevant to most peoples’ real economic circumstances.”
Bernstein acknowledges that direct stock holdings are concentrated among the wealthiest, but he highlights that many middle-class families are invested in retirement accounts.
“We’re going to fight hard to maintain the strength in the real economy — particularly the job market — while continuing to put downward pressure on prices because that’s what leads to stronger paychecks, and that is absolutely at the core."
"But for a lot of people — even in the middle class — a rising stock market is an important benefit,” Bernstein said.
“The fact that some of the forces that have been supporting the rally relate to the president’s agenda — that seems like fair game to point out.”
https://www.politico.com/news/2024/02/1 ... t-00141387
"Biden’s risky new bet: the stock market - The president and his aides have begun touting stock market gains, a messaging shift that makes some Democrats uneasy."
By JASPER GOODMAN
02/14/2024 09:17 AM EST
President Joe Biden is starting to sound a little more like his predecessor.
He wants you to know how great the stock market is doing under his watch.
It’s a messaging shift that makes some Democrats uneasy, given the likelihood of market volatility and the inequality among investors.
It’s also a break from Biden’s own stance during the last election when he knocked then-President Donald Trump for focusing on the strength of stocks.
“He thinks the economy is doing well if the Dow Jones is doing well,” Biden said on X, formerly Twitter, in October 2020.
“Believe it or not, Mr. President, most Americans don’t live off the stock market.”
Fast forward to last Saturday, when Biden used X to tout “good news” for folks to start the weekend: “The stock market going strong is a sign of confidence in America’s economy.”
Tuesday’s steep drop in stocks, triggered by unexpectedly strong inflation data, illustrated the risks in the approach.
The new messaging comes as poll after poll shows deep skepticism from voters on Biden’s handling of the economy.
“If I were there, I’d be telling the president: ‘Stock markets go up, but stock markets also go down,’” said Jason Furman, a top economic adviser to former President Barack Obama.
“You’re taking a risk if you’re resting too much of your case on something that could prove ephemeral.”
Trump not only took credit for the stock market’s run during his administration, but he’s also tried to argue that the most recent surge can be attributed to anticipation of his return to office.
Jared Bernstein, the chair of the White House Council of Economic Advisers, said in an interview that the administration’s recent posts trumpeting the stock market were not a response to the former president.
Bernstein, a long-time Biden aide, said it’s “just our team’s substantive take on a set of forces that look like they’re in play in this rally.”
White House communications director Ben LaBolt posted on X Saturday that “Americans are going to be happy with their 401(k) statements,” a message that Bernstein reposted and cheered on from his own X account.
“No one’s saying anything about where the market is headed,” Bernstein said on a call Monday, adding that the messaging push was about the rally over the past few months.
“We think some of the forces behind the rally are those that this president has helped to put in play.”
He pointed to reversed recession expectations, a bright domestic investment outlook driven by Biden’s legislative agenda, and the strength of the U.S. economy compared to global competitors.
And to be sure, the president’s speeches focus largely on the real economy, not the markets.
When politicians try to take credit for rising stocks, there’s not only the risk that share prices will fall.
It also draws attention to the fact that the market delivers the biggest benefits to those who are already well-off.
The wealthiest Americans are far more likely to hold stocks than those with lower incomes.
Josh Bivens, chief economist at the left-leaning Economic Policy Institute, said stock market gains are “really about how the wealthiest are faring” and are “mostly irrelevant to most peoples’ real economic circumstances.”
Bernstein acknowledges that direct stock holdings are concentrated among the wealthiest, but he highlights that many middle-class families are invested in retirement accounts.
“We’re going to fight hard to maintain the strength in the real economy — particularly the job market — while continuing to put downward pressure on prices because that’s what leads to stronger paychecks, and that is absolutely at the core."
"But for a lot of people — even in the middle class — a rising stock market is an important benefit,” Bernstein said.
“The fact that some of the forces that have been supporting the rally relate to the president’s agenda — that seems like fair game to point out.”
https://www.politico.com/news/2024/02/1 ... t-00141387
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
The Washington Post
"Biden has a story to tell about the economy. Inflation gets in the way."
Story by Dan Balz
14 APRIL 2024
President Biden has a story he wants to tell voters about the economy, one of consistent job growth over the course of his presidency and of a pandemic recovery that has led the world.
Inflation keeps getting in the way.
Last week’s inflation report showed consumer prices rising 3.5 percent from March 2023 to March 2024.
This continued a string of surprises this year, suggesting a resurgence in inflation after signs had pointed in the other direction.
Biden administration officials have noted that the inflation rate has fallen since its earlier peak, but the latest numbers show it has not fully cooled.
For now, it is moving in the wrong direction and remains above the Federal Reserve’s target of 2 percent.
Despite unemployment at a half-century low, the president’s economic job approval is net negative by a significant margin.
The RealClearPolitics average shows that he is net negative by 18 percentage points on his handling of the economy and by 27 percentage points on how he’s dealt with inflation.
Political strategists in both parties have reported that voters repeatedly point to higher prices as a source of their unhappiness about the state of the country.
The cost of everyday items — gasoline, food, housing — hits them constantly.
It’s hard to persuade voters to look on the sunny side when they are feeling the squeeze of higher prices on their household budgets.
Voters’ common refrain is summed up as: Things cost too much.
Gasoline prices are rising once again, a typical occurrence as summer approaches.
Although they are below their peak during the Biden presidency, they are significantly higher than when he took office.
In early 2021, average gas price was $2.42.
Today it is about $3.50, according to the U.S. Energy Information Agency.
Food prices are taking another bite out of household incomes.
From 2019 to 2023, food prices rose by 25 percent, according to the U.S. Department of Agriculture.
Food costs accounted for 11.3 percent of disposable income in 2022, according to the most recent USDA analysis.
That is the highest it has been since 1991, when families spent 11.4 percent of disposable income on food.
A dozen eggs now cost, on average, about $2.99, according to one indicator.
That compares to an inflation-adjusted $2.09 per dozen in 2020.
Higher interest rates have meant more costly home mortgages.
Mortgage rates began to ease but that has stalled or even begun to reverse.
The Wall Street Journal carried a story on Friday that looked at the impact on middle-income families.
The headline read: “Stay Put or Pay Up: Home Buyers Lose Hope for Lower Rates.”
The story said that, in March, a median-income family could afford a house costing no more than $416,000, given current interest rates and assuming a down payment of 20 percent.
Three years ago, when mortgage rates were lower, that family could have bought a house valued at $561,000.
Other unexpected and unavoidable costs are hitting family pocketbooks.
Car insurance is one example, with rates up 22.2 percent in the past year, the biggest increase since 1976.
In Nevada, a presidential battleground state, auto insurance rates were up 38 percent over the previous year, according to a CNN report.
My colleague Heather Long posted on X earlier this year that, as of February, household repair costs had risen 18 percent over the previous year and nonprescription drugs were up 9 percent.
Both, she noted on the social media platform formerly known as Twitter, were the highest such increases ever recorded.
Biden issued a statement last week after the March consumer price index report.
He stressed that inflation had declined by more than 60 percent from its peak but said, “We have more to do to lower costs for hard-working families.”
He added, “Fighting inflation remains my top economic priority.”
But presidents have few weapons in the fight against inflation.
Jason Furman, an economist at Harvard University and chairman of the Council of Economic Advisers in the Obama administration, said 90 percent of controlling inflation is the job of the Federal Reserve.
“The White House mostly has to figure out the best message to get through it, without a lot of tools to change the reality,” he said.
Biden has pushed policies aimed at lowering the cost of prescription drugs and he has gone after junk fees that companies add to things like airline tickets, car rentals and event tickets.
He announced initiatives to provide assistance for home buyers in his State of the Union address, but they are going nowhere.
Twice this past week, the administration announced actions to reduce student debt, efforts aimed to shore up support among younger voters.
But those policies affect the pocketbooks only of those who qualify while adding future costs to the government.
And they have drawn criticism for helping some who went to college at the expense of others who never went to college.
The Fed would cut interest rates for two reasons — to head off a recession if one was looming or because inflation had eased enough to give officials confidence that lower rates would not reignite another inflationary round.
Neither condition exists right now.
There is no recession on the horizon, after a long period of predictions that interest rate hikes could or would bring about a recession.
And now prices are rising more rapidly than expected.
Economists think it’s doubtful there will be a rate cut in June, as had been assumed a few months ago.
A reduction in rates in September, though perhaps warranted economically by then, could be too close to the election, leaving Federal Reserve Board Chair Jerome H. Powell open to criticism that the Fed was acting to help Biden politically.
The 2024 election will be fought over more than economic issues.
The biggest political story of the past week was the decision by the Arizona Supreme Court to resurrect an 1864 law that bans abortions except in the case of a danger to the life of the mother and that imposes penalties on those who provide abortions.
The decision will ensure that abortion will be a key issue in one of the most important battlegrounds in November, with the likelihood of an abortion referendum on the ballot.
Vice President Harris, who has led the administration’s messaging on abortion for the past two years, flew to Arizona on Friday to highlight the state court action.
Biden has also made clear he will continue to focus on former president Donald Trump as a threat to democracy.
Trump has said a second term would be an opportunity for retribution against his adversaries, and he has never retreated from his false claim that the 2020 election was stolen.
In the 2022 midterm elections, pre-election polls suggested that inflation and the economy were the biggest issues on the minds of voters, which led to predictions of sweeping Republican gains.
In the end, however, abortion and threats to democracy combined to motivate Democratic voters.
Republicans came out of the midterms disappointed, gaining only a tiny majority in the House, failing to take control of the Senate and losing several contested elections for governor.
Biden hopes that may be the case again this November.
But for him, the uptick in the inflation rate has come at just the wrong moment.
Many Americans are saying they think things were better economically under Trump.
The current president doesn’t have much time to change those perceptions — even as he tries to force the election onto other terrain.
https://www.msn.com/en-us/money/markets ... 7f47&ei=26
"Biden has a story to tell about the economy. Inflation gets in the way."
Story by Dan Balz
14 APRIL 2024
President Biden has a story he wants to tell voters about the economy, one of consistent job growth over the course of his presidency and of a pandemic recovery that has led the world.
Inflation keeps getting in the way.
Last week’s inflation report showed consumer prices rising 3.5 percent from March 2023 to March 2024.
This continued a string of surprises this year, suggesting a resurgence in inflation after signs had pointed in the other direction.
Biden administration officials have noted that the inflation rate has fallen since its earlier peak, but the latest numbers show it has not fully cooled.
For now, it is moving in the wrong direction and remains above the Federal Reserve’s target of 2 percent.
Despite unemployment at a half-century low, the president’s economic job approval is net negative by a significant margin.
The RealClearPolitics average shows that he is net negative by 18 percentage points on his handling of the economy and by 27 percentage points on how he’s dealt with inflation.
Political strategists in both parties have reported that voters repeatedly point to higher prices as a source of their unhappiness about the state of the country.
The cost of everyday items — gasoline, food, housing — hits them constantly.
It’s hard to persuade voters to look on the sunny side when they are feeling the squeeze of higher prices on their household budgets.
Voters’ common refrain is summed up as: Things cost too much.
Gasoline prices are rising once again, a typical occurrence as summer approaches.
Although they are below their peak during the Biden presidency, they are significantly higher than when he took office.
In early 2021, average gas price was $2.42.
Today it is about $3.50, according to the U.S. Energy Information Agency.
Food prices are taking another bite out of household incomes.
From 2019 to 2023, food prices rose by 25 percent, according to the U.S. Department of Agriculture.
Food costs accounted for 11.3 percent of disposable income in 2022, according to the most recent USDA analysis.
That is the highest it has been since 1991, when families spent 11.4 percent of disposable income on food.
A dozen eggs now cost, on average, about $2.99, according to one indicator.
That compares to an inflation-adjusted $2.09 per dozen in 2020.
Higher interest rates have meant more costly home mortgages.
Mortgage rates began to ease but that has stalled or even begun to reverse.
The Wall Street Journal carried a story on Friday that looked at the impact on middle-income families.
The headline read: “Stay Put or Pay Up: Home Buyers Lose Hope for Lower Rates.”
The story said that, in March, a median-income family could afford a house costing no more than $416,000, given current interest rates and assuming a down payment of 20 percent.
Three years ago, when mortgage rates were lower, that family could have bought a house valued at $561,000.
Other unexpected and unavoidable costs are hitting family pocketbooks.
Car insurance is one example, with rates up 22.2 percent in the past year, the biggest increase since 1976.
In Nevada, a presidential battleground state, auto insurance rates were up 38 percent over the previous year, according to a CNN report.
My colleague Heather Long posted on X earlier this year that, as of February, household repair costs had risen 18 percent over the previous year and nonprescription drugs were up 9 percent.
Both, she noted on the social media platform formerly known as Twitter, were the highest such increases ever recorded.
Biden issued a statement last week after the March consumer price index report.
He stressed that inflation had declined by more than 60 percent from its peak but said, “We have more to do to lower costs for hard-working families.”
He added, “Fighting inflation remains my top economic priority.”
But presidents have few weapons in the fight against inflation.
Jason Furman, an economist at Harvard University and chairman of the Council of Economic Advisers in the Obama administration, said 90 percent of controlling inflation is the job of the Federal Reserve.
“The White House mostly has to figure out the best message to get through it, without a lot of tools to change the reality,” he said.
Biden has pushed policies aimed at lowering the cost of prescription drugs and he has gone after junk fees that companies add to things like airline tickets, car rentals and event tickets.
He announced initiatives to provide assistance for home buyers in his State of the Union address, but they are going nowhere.
Twice this past week, the administration announced actions to reduce student debt, efforts aimed to shore up support among younger voters.
But those policies affect the pocketbooks only of those who qualify while adding future costs to the government.
And they have drawn criticism for helping some who went to college at the expense of others who never went to college.
The Fed would cut interest rates for two reasons — to head off a recession if one was looming or because inflation had eased enough to give officials confidence that lower rates would not reignite another inflationary round.
Neither condition exists right now.
There is no recession on the horizon, after a long period of predictions that interest rate hikes could or would bring about a recession.
And now prices are rising more rapidly than expected.
Economists think it’s doubtful there will be a rate cut in June, as had been assumed a few months ago.
A reduction in rates in September, though perhaps warranted economically by then, could be too close to the election, leaving Federal Reserve Board Chair Jerome H. Powell open to criticism that the Fed was acting to help Biden politically.
The 2024 election will be fought over more than economic issues.
The biggest political story of the past week was the decision by the Arizona Supreme Court to resurrect an 1864 law that bans abortions except in the case of a danger to the life of the mother and that imposes penalties on those who provide abortions.
The decision will ensure that abortion will be a key issue in one of the most important battlegrounds in November, with the likelihood of an abortion referendum on the ballot.
Vice President Harris, who has led the administration’s messaging on abortion for the past two years, flew to Arizona on Friday to highlight the state court action.
Biden has also made clear he will continue to focus on former president Donald Trump as a threat to democracy.
Trump has said a second term would be an opportunity for retribution against his adversaries, and he has never retreated from his false claim that the 2020 election was stolen.
In the 2022 midterm elections, pre-election polls suggested that inflation and the economy were the biggest issues on the minds of voters, which led to predictions of sweeping Republican gains.
In the end, however, abortion and threats to democracy combined to motivate Democratic voters.
Republicans came out of the midterms disappointed, gaining only a tiny majority in the House, failing to take control of the Senate and losing several contested elections for governor.
Biden hopes that may be the case again this November.
But for him, the uptick in the inflation rate has come at just the wrong moment.
Many Americans are saying they think things were better economically under Trump.
The current president doesn’t have much time to change those perceptions — even as he tries to force the election onto other terrain.
https://www.msn.com/en-us/money/markets ... 7f47&ei=26
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
Axios
"Biden's new take on inflation: Trump would be worse"
Story by Hans Nichols
14 APRIL 2024
The White House is rolling out its latest response to high inflation: It will be much worse if former President Trump is elected.
Why it matters:
President Biden and his top economic advisers know that inflation has given voters bad vibes that have become a hurdle to his re-election — and that there's not a lot they can do to lower it before November.
So they're turning to a new line of attack: warning voters how much higher inflation could climb if Trump imposes new tariffs on China and gives more tax cuts to the wealthiest Americans.
"MAGAnomics is inflation-feeding welfare for the rich that raises taxes," White House deputy press secretary Andrew Bates writes in a new memo to Biden allies, out this morning.
"Not only will Bidenomics lower costs even more, but it will also attack inflation by undoing tax giveaways for rich special interests," Bates wrote.
Driving the news:
March's Consumer Price Index was full of bad news for Biden.
The headline number — inflation rising at a rate of 3.5% over 12 months — was higher than expected, undercutting Biden's argument that his policies are continuing to lower prices.
It also gave Trump an opening to attack Biden and the Federal Reserve.
"INFLATION is BACK—and RAGING!," the former president wrote in a Truth Social post.
Between the lines:
Perhaps a bigger concern for Biden: Oil prices have been creeping up all year — and could jump higher if Iran attacks Israel and Middle East supply routes are disrupted.
That would lead to high gas prices, an inflation reading the White House dreads.
Voters see it every day.
In swing states such as Nevada, average gas prices are at $4.62 per gallon, up 50 cents over the last month.
In Arizona, it's $4.14 per gallon, up 58 cents.
What they are saying:
After Wednesday's reading, Biden reiterated that "fighting inflation remains my top economic priority."
"We have a plan to deal with it, whereas the opposition ... talks about two things," he said.
"They just want to cut taxes for the wealthy and raise taxes on other people."
But Biden also acknowledged that March's CPI reading will delay the Fed's plan to start cutting interest rates.
That will translate into higher borrowing costs for consumers for longer.
Zoom out:
Throughout his presidency, Biden has adopted different approaches to inflation.
At first, he and his economic advisers insisted it was "transitory" and would naturally recede by itself.
He also blamed others for prices, first starting with snarled supply chains, then moving on to Putin's invasion of Ukraine, and most recently hitting corporations for so-called "shrinkflation."
Zoom in:
Economists fiercely debate how much Biden's first stimulus package, the $1.9 trillion American Rescue Plan, contributed to inflation.
Biden's main legislative attack on high prices — the Inflation Reduction Act (IRA) — included provisions to lower out-of-pocket costs for prescription drugs for seniors.
Policymakers generally agree that deficit spending leads to higher inflation.
The skyrocketing price tag of the IRA — its climate provisions could end up costing $1.2 trillion, three times higher than the original estimate — could end up increasing inflation, not reducing it.
What we're watching:
When inflation was spiking in the spring of 2022, the Biden administration hotly debated whether to lower some of Trump's China tariffs on some $300 billion consumer goods.
Biden is expected to formally extend most of Trump's tariffs this spring, but he can still tinker with the list and take some consumer goods off of it.
That could provide relief on some products.
https://www.msn.com/en-us/news/politics ... 7f47&ei=54
"Biden's new take on inflation: Trump would be worse"
Story by Hans Nichols
14 APRIL 2024
The White House is rolling out its latest response to high inflation: It will be much worse if former President Trump is elected.
Why it matters:
President Biden and his top economic advisers know that inflation has given voters bad vibes that have become a hurdle to his re-election — and that there's not a lot they can do to lower it before November.
So they're turning to a new line of attack: warning voters how much higher inflation could climb if Trump imposes new tariffs on China and gives more tax cuts to the wealthiest Americans.
"MAGAnomics is inflation-feeding welfare for the rich that raises taxes," White House deputy press secretary Andrew Bates writes in a new memo to Biden allies, out this morning.
"Not only will Bidenomics lower costs even more, but it will also attack inflation by undoing tax giveaways for rich special interests," Bates wrote.
Driving the news:
March's Consumer Price Index was full of bad news for Biden.
The headline number — inflation rising at a rate of 3.5% over 12 months — was higher than expected, undercutting Biden's argument that his policies are continuing to lower prices.
It also gave Trump an opening to attack Biden and the Federal Reserve.
"INFLATION is BACK—and RAGING!," the former president wrote in a Truth Social post.
Between the lines:
Perhaps a bigger concern for Biden: Oil prices have been creeping up all year — and could jump higher if Iran attacks Israel and Middle East supply routes are disrupted.
That would lead to high gas prices, an inflation reading the White House dreads.
Voters see it every day.
In swing states such as Nevada, average gas prices are at $4.62 per gallon, up 50 cents over the last month.
In Arizona, it's $4.14 per gallon, up 58 cents.
What they are saying:
After Wednesday's reading, Biden reiterated that "fighting inflation remains my top economic priority."
"We have a plan to deal with it, whereas the opposition ... talks about two things," he said.
"They just want to cut taxes for the wealthy and raise taxes on other people."
But Biden also acknowledged that March's CPI reading will delay the Fed's plan to start cutting interest rates.
That will translate into higher borrowing costs for consumers for longer.
Zoom out:
Throughout his presidency, Biden has adopted different approaches to inflation.
At first, he and his economic advisers insisted it was "transitory" and would naturally recede by itself.
He also blamed others for prices, first starting with snarled supply chains, then moving on to Putin's invasion of Ukraine, and most recently hitting corporations for so-called "shrinkflation."
Zoom in:
Economists fiercely debate how much Biden's first stimulus package, the $1.9 trillion American Rescue Plan, contributed to inflation.
Biden's main legislative attack on high prices — the Inflation Reduction Act (IRA) — included provisions to lower out-of-pocket costs for prescription drugs for seniors.
Policymakers generally agree that deficit spending leads to higher inflation.
The skyrocketing price tag of the IRA — its climate provisions could end up costing $1.2 trillion, three times higher than the original estimate — could end up increasing inflation, not reducing it.
What we're watching:
When inflation was spiking in the spring of 2022, the Biden administration hotly debated whether to lower some of Trump's China tariffs on some $300 billion consumer goods.
Biden is expected to formally extend most of Trump's tariffs this spring, but he can still tinker with the list and take some consumer goods off of it.
That could provide relief on some products.
https://www.msn.com/en-us/news/politics ... 7f47&ei=54
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
The Daily Mail
"US sends in amphibious warship USS Bataan and support vessels with 2,500 Marines on board into the Eastern Mediterranean and places military bases in Iraq on full alert as Iran attacks Israel"
Story by Joe Hutchison For Dailymail.Com and Bill Lowther In Washington For The Mail On Sunday
14 APRIL 2024
The US have sent the war ship Bataan as well as two support ships with 2,500 Marines onboard into the Eastern Mediterranean after Iran launched a drone attack on Israel.
US Congressional sources say the amphibious war ship Bataan is leading a US naval task force in the Eastern Mediterranean.
The Bataan has two support ships and together they have about 2,500 Marines onboard.
The US also has several guided missile destroyers including the Carney in the area.
US bases in Iraq have been placed on full alert and will also attempt to shoot down missiles and drones aimed at Israel.
In addition, the US has two destroyers and a Cruiser in the Red Sea that are fully armed with anti-missile weapons and they too are under orders to shoot down any Israeli bound missiles or drones.
Iran launched the drones Saturday afternoon Eastern Standard Time, and they are expected to take hours to reach their target.
President Joe Biden said on Friday he expects Iran to attack Israel 'sooner than later' and said his message to Tehran was 'don't.'
'We are devoted to the defense of Israel.'
'We will support Israel and help defend Israel and Iran will not succeed,' Biden said after addressing a gathering of black leaders.
On Saturday afternoon, President Biden rushed back from Delaware for an emergency national security meeting on the matter.
Israel has an 'iron dome' security system which can shoot down enemy missiles, although it is unclear if it will be able to fend off the full force of Iran's attack.
Dozens of drones were seen flying from Iran over neighboring Iraq's Sulaymaniya province, according to three security sources.
Iran's Islamic Revolutionary Guard Corps said via state media that it had 'launched extensive drone strikes against targets in occupied territories.'
Iranian media reported that a second wave of drones has been launched, though details on their current location are not yet known.
The IDF's spokesperson, Rear Admiral Daniel Hagari, said it would take several hours for the drones to arrive in Israel, adding that sirens would be sounded in threatened areas.
The IDF said: 'The air defense array is on high alert at the same time as the Air Force planes and Navy ships that are on a mission to protect the country’s skies."
"The IDF is monitoring all targets.
'We ask the public to adhere to and follow the instructions of the Home Front Command and the official IDF announcements regarding the matter.'
Iran had threatened to hit back at Israel over an attack in Syria, which Tehran say was an Israeli airstrike on a Iranian diplomatic building in Damascus.
Iran's Supreme Leader Ali Khamenei vowed retribution in the wake of the Damascus attack, for which Tel-Aviv has yet to take responsibility.
The April 1 attack destroyed Iran's consulate building in the city and killed seven Revolutionary Guards, including the two generals.
Iran's supreme leader, Ayatollah Ali Khamenei, warned Wednesday that Israel 'must be punished and will be punished', days after one of his advisers said Israeli embassies are 'no longer safe'.
https://www.msn.com/en-us/news/world/us ... 7f47&ei=69
"US sends in amphibious warship USS Bataan and support vessels with 2,500 Marines on board into the Eastern Mediterranean and places military bases in Iraq on full alert as Iran attacks Israel"
Story by Joe Hutchison For Dailymail.Com and Bill Lowther In Washington For The Mail On Sunday
14 APRIL 2024
The US have sent the war ship Bataan as well as two support ships with 2,500 Marines onboard into the Eastern Mediterranean after Iran launched a drone attack on Israel.
US Congressional sources say the amphibious war ship Bataan is leading a US naval task force in the Eastern Mediterranean.
The Bataan has two support ships and together they have about 2,500 Marines onboard.
The US also has several guided missile destroyers including the Carney in the area.
US bases in Iraq have been placed on full alert and will also attempt to shoot down missiles and drones aimed at Israel.
In addition, the US has two destroyers and a Cruiser in the Red Sea that are fully armed with anti-missile weapons and they too are under orders to shoot down any Israeli bound missiles or drones.
Iran launched the drones Saturday afternoon Eastern Standard Time, and they are expected to take hours to reach their target.
President Joe Biden said on Friday he expects Iran to attack Israel 'sooner than later' and said his message to Tehran was 'don't.'
'We are devoted to the defense of Israel.'
'We will support Israel and help defend Israel and Iran will not succeed,' Biden said after addressing a gathering of black leaders.
On Saturday afternoon, President Biden rushed back from Delaware for an emergency national security meeting on the matter.
Israel has an 'iron dome' security system which can shoot down enemy missiles, although it is unclear if it will be able to fend off the full force of Iran's attack.
Dozens of drones were seen flying from Iran over neighboring Iraq's Sulaymaniya province, according to three security sources.
Iran's Islamic Revolutionary Guard Corps said via state media that it had 'launched extensive drone strikes against targets in occupied territories.'
Iranian media reported that a second wave of drones has been launched, though details on their current location are not yet known.
The IDF's spokesperson, Rear Admiral Daniel Hagari, said it would take several hours for the drones to arrive in Israel, adding that sirens would be sounded in threatened areas.
The IDF said: 'The air defense array is on high alert at the same time as the Air Force planes and Navy ships that are on a mission to protect the country’s skies."
"The IDF is monitoring all targets.
'We ask the public to adhere to and follow the instructions of the Home Front Command and the official IDF announcements regarding the matter.'
Iran had threatened to hit back at Israel over an attack in Syria, which Tehran say was an Israeli airstrike on a Iranian diplomatic building in Damascus.
Iran's Supreme Leader Ali Khamenei vowed retribution in the wake of the Damascus attack, for which Tel-Aviv has yet to take responsibility.
The April 1 attack destroyed Iran's consulate building in the city and killed seven Revolutionary Guards, including the two generals.
Iran's supreme leader, Ayatollah Ali Khamenei, warned Wednesday that Israel 'must be punished and will be punished', days after one of his advisers said Israeli embassies are 'no longer safe'.
https://www.msn.com/en-us/news/world/us ... 7f47&ei=69
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
THE CAPE CHARLES MIRROR APRIL 12, 2024 AT 8:30 PM
Paul Plante says:
And here is an existential question for our times today – if back in 1924, men and women in America had become convinced at last, and with good logic, that government by professional politicians like Joe Biden was intolerably and hopelessly rotten and that the only remedy was to turn them out, and then make laws to prevent them coming back, how on earth is it that today, we are stuck with this piece of ignorant dead wood named Joseph Robinette Biden, Junior, as president?
Have we become stupid since then?
Have we become brain-dead as a people and as a nation?
Are we moon-struck and dazed which made us believe that somehow, in some strange and mysterious and perhaps mystical or magical way, despite his proven record of nothingness and failure, that electing Joe Biden president would transform him from a loser into a brilliant and dynamic and forceful yet intelligent world leader?
If so, we were seriously deluded, weren’t we, given Joe Biden is anything but.
Or is it more a case that we have become so degenerated as a people in the last hundred years since 1924 that we see a mediocrity like Joe Biden as being the best among us?
Consider that in 2012, Sen. John McCain, who would know the difference, stated that Joe Biden has been consistently wrong on every national security issue that McCain had been involved in in the last 20 years or so, while in 2014, in a memoir by former Obama Defense Secretary Bob Gates, he slammed Joe’s foreign policy, saying therein: “I think he has been wrong on nearly every major foreign policy and national security issue over the past four decades.”
And look where Joe has steered the nation since then – into CHAOS and TURMOIL!
Boggles the mind, don’t it?
Stay tuned!
http://www.capecharlesmirror.com/paul-p ... ent-917356
Paul Plante says:
And here is an existential question for our times today – if back in 1924, men and women in America had become convinced at last, and with good logic, that government by professional politicians like Joe Biden was intolerably and hopelessly rotten and that the only remedy was to turn them out, and then make laws to prevent them coming back, how on earth is it that today, we are stuck with this piece of ignorant dead wood named Joseph Robinette Biden, Junior, as president?
Have we become stupid since then?
Have we become brain-dead as a people and as a nation?
Are we moon-struck and dazed which made us believe that somehow, in some strange and mysterious and perhaps mystical or magical way, despite his proven record of nothingness and failure, that electing Joe Biden president would transform him from a loser into a brilliant and dynamic and forceful yet intelligent world leader?
If so, we were seriously deluded, weren’t we, given Joe Biden is anything but.
Or is it more a case that we have become so degenerated as a people in the last hundred years since 1924 that we see a mediocrity like Joe Biden as being the best among us?
Consider that in 2012, Sen. John McCain, who would know the difference, stated that Joe Biden has been consistently wrong on every national security issue that McCain had been involved in in the last 20 years or so, while in 2014, in a memoir by former Obama Defense Secretary Bob Gates, he slammed Joe’s foreign policy, saying therein: “I think he has been wrong on nearly every major foreign policy and national security issue over the past four decades.”
And look where Joe has steered the nation since then – into CHAOS and TURMOIL!
Boggles the mind, don’t it?
Stay tuned!
http://www.capecharlesmirror.com/paul-p ... ent-917356
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
REUTERS
"US lawmakers angry after Huawei unveils laptop with new Intel AI chip"
By Reuters
April 12, 2024
WASHINGTON, April 12 (Reuters) - Republican U.S. lawmakers on Friday criticized the Biden administration after sanctioned Chinese telecoms equipment giant Huawei unveiled a laptop this week powered by an Intel AI chip.
The United States placed Huawei on a trade restriction list in 2019 for violating Iran sanctions, part of a broader effort to hobble Beijing's technological advances.
Placement on the list means the company's suppliers have to seek a special, difficult-to-obtain license before shipping to it.
One such license, issued by the Trump administration, has allowed Intel to ship central processors to Huawei for use in laptops since 2020.
China hardliners had urged the Biden administration to revoke that license, but many grudgingly accepted that it would expire later this year and not be renewed.
Huawei's unveiling Thursday of its first AI-enabled laptop, the MateBook X Pro powered by Intel's new Core Ultra 9 processor, shocked and angered them, because it suggested to them that the Commerce Department had approved shipments of the new chip to Huawei.
“One of the greatest mysteries in Washington, DC is why the Department of Commerce continues to allow U.S. technology to be shipped to Huawei" Republican Congressman Michael Gallagher, who chairs the House of Representatives select committee on China, said in a statement to Reuters.
A source familiar with the matter said the chips were shipped under a preexisting license.
They are not covered by recent broad-cased restrictions on AI chip shipments to China, the source and another person said.
The Commerce Department and Intel declined to comment.
Huawei did not immediately respond to requests for comment.
The reaction is a sign of growing pressure on the Biden administration to do more to thwart Huawei's rise, nearly five years after it was added to a trade restriction list.
In August, it shocked the world with a new phone powered by a sophisticated chip manufactured by sanctioned Chinese chipmaker SMIC, becoming a symbol of China's technological resurgence despite Washington's ongoing efforts to cripple its capacity to produce advanced semiconductors.
At a Senate subcommittee hearing this week, Kevin Kurland, an export enforcement official, said Washington's restrictions on Huawei have had a "significant impact" on it access to U.S. technology.
He also stressed that the goal was not necessarily to stop Huawei from growing but to keep it from misusing U.S. technology for "malign activities."
But the remarks did little to stem frustration among Republican China hawks following the news about Huawei's new laptop.
"These approvals must stop," Republican congressman Michael McCaul said in a statement to Reuters.
"Two years ago, I was told licenses to Huawei would stop."
"Today, it doesn’t seem as though the policy has changed."
Reporting by Alexandra Alper and Karen Freifeld; Editing by Leslie Adler and Stephen Coates
https://www.reuters.com/technology/us-l ... 024-04-12/
"US lawmakers angry after Huawei unveils laptop with new Intel AI chip"
By Reuters
April 12, 2024
WASHINGTON, April 12 (Reuters) - Republican U.S. lawmakers on Friday criticized the Biden administration after sanctioned Chinese telecoms equipment giant Huawei unveiled a laptop this week powered by an Intel AI chip.
The United States placed Huawei on a trade restriction list in 2019 for violating Iran sanctions, part of a broader effort to hobble Beijing's technological advances.
Placement on the list means the company's suppliers have to seek a special, difficult-to-obtain license before shipping to it.
One such license, issued by the Trump administration, has allowed Intel to ship central processors to Huawei for use in laptops since 2020.
China hardliners had urged the Biden administration to revoke that license, but many grudgingly accepted that it would expire later this year and not be renewed.
Huawei's unveiling Thursday of its first AI-enabled laptop, the MateBook X Pro powered by Intel's new Core Ultra 9 processor, shocked and angered them, because it suggested to them that the Commerce Department had approved shipments of the new chip to Huawei.
“One of the greatest mysteries in Washington, DC is why the Department of Commerce continues to allow U.S. technology to be shipped to Huawei" Republican Congressman Michael Gallagher, who chairs the House of Representatives select committee on China, said in a statement to Reuters.
A source familiar with the matter said the chips were shipped under a preexisting license.
They are not covered by recent broad-cased restrictions on AI chip shipments to China, the source and another person said.
The Commerce Department and Intel declined to comment.
Huawei did not immediately respond to requests for comment.
The reaction is a sign of growing pressure on the Biden administration to do more to thwart Huawei's rise, nearly five years after it was added to a trade restriction list.
In August, it shocked the world with a new phone powered by a sophisticated chip manufactured by sanctioned Chinese chipmaker SMIC, becoming a symbol of China's technological resurgence despite Washington's ongoing efforts to cripple its capacity to produce advanced semiconductors.
At a Senate subcommittee hearing this week, Kevin Kurland, an export enforcement official, said Washington's restrictions on Huawei have had a "significant impact" on it access to U.S. technology.
He also stressed that the goal was not necessarily to stop Huawei from growing but to keep it from misusing U.S. technology for "malign activities."
But the remarks did little to stem frustration among Republican China hawks following the news about Huawei's new laptop.
"These approvals must stop," Republican congressman Michael McCaul said in a statement to Reuters.
"Two years ago, I was told licenses to Huawei would stop."
"Today, it doesn’t seem as though the policy has changed."
Reporting by Alexandra Alper and Karen Freifeld; Editing by Leslie Adler and Stephen Coates
https://www.reuters.com/technology/us-l ... 024-04-12/
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
REUTERS
"Bank of America profit hurt by losses on credit cards, office loans"
By Saeed Azhar and Mehnaz Yasmin
April 16, 2024
NEW YORK, April 16 (Reuters) - Bank of America shares on Tuesday fell more than 3% after its first-quarter profits shrank and the bank set aside more money to cover souring loans from consumers whose finances are worsening.
U.S. lenders have cited resilient household finances as evidence that the economy remains on a solid footing, but cracks are starting to show for the lowest-income consumers.
While their spending remains robust despite rising borrowing costs, higher prices and shrinking savings, banks are preparing for more Americans to miss payments.
"The market has used Bank of America as the bellwether for consumer commentary," said David Wagner, a portfolio manager at Aptus Capital Advisors.
"The weakness in credit card delinquencies caught them offside."
BofA's net charge-offs, or debts that are unlikely to be recovered, rose to $1.5 billion in the first quarter from $807 million a year earlier, mainly from credit card losses.
The charge-offs are from delinquencies in the fourth quarter, but are beginning to stabilize, said Alastair Borthwick, chief financial officer.
"The main economic hangover for Bank of America as well as most other banks is that Federal Reserve interest rates may not decline as quickly as previously expected," said Michael Ashley Schulman, chief investment officer of California-based investment firm Running Point, which advises wealthy families.
"Therefore they may see an uptick in consumer and business delinquencies and defaults, especially from real estate."
"One good quarter from the bank is not going to allay these macro concerns."
Despite Tuesday's decline, BofA shares were up about 3% this year, lagging the S&P 500 bank index's 4.7% increase and a 6% gain for rival JPMorgan.
BofA's net interest income (NII) — the difference between what it earns on loans and pays for deposits — slid 3% to $14 billion as it paid more to customers to park their money while demand from borrowers stayed modest.
But it was turning more optimistic.
"We continue to expect that Q2 will be the low point for NII and we expect the back half of 2024 to grow," Borthwick told analysts on a conference call on Tuesday.
JPMorgan, the largest U.S. lender, slightly increased its estimate for NII, disappointing investors who hoped that the bank would reap even greater benefits from a prolonged period of higher interest rates.
BofA's CEO Brian Moynihan told analysts the bank had cut the workforce by more than 4,700 employees from the first quarter of 2023.
SHIFTING EXPECTATIONS
Excluding one-off items, Bank of America earned 83 cents a share in the first quarter, ahead of analysts' average estimate of 76 cents a share, according to LSEG data.
Still, shifting expectations for U.S. interest rate cuts and an uncertain economic outlook have made it more difficult to predict future profits, banking executives said last week.
If the Federal Reserve keeps rates higher for longer in the coming months, lenders that made bumper profits from rising interest rates in the last two years could build on their gains.
But their earnings could diminish if a potential economic slowdown deters borrowers from taking out loans.
"Generally speaking, higher for longer is probably better for banks," said Borthwick.
"Inflation is under control ... that appears to be the case."
"So that's obviously a good place."
A resilient U.S. economy, buoyant equities and a flurry of large deals have reignited hopes of a nascent recovery in dealmaking, although industry executives have expressed guarded optimism.
Investment banking fees jumped 35% to $1.6 billion from a year earlier, partially offsetting a decline in interest payments due to slow demand from borrowers.
Last month, Borthwick said he expected investment banking revenue to jump 10% to 15% in the first quarter.
Revenue from the segment also rose at rival JPMorgan and Citigroup in the first quarter, fueled by gains in debt and equity capital markets.
BofA's sales and trading revenue rose 2% to $5.2 billion with equities contributing a 15% jump and fixed income currencies and commodities posting a 4% decline.
COMMERCIAL REAL ESTATE
Bank of America set aside $1.3 billion in provisions for credit losses in the first quarter, up from $931 million a year earlier.
It also took more writedowns on office loans, which partly increased loan losses for its commercial division.
Still, its CFO said the lender had limited commercial real estate exposure and was reviewing ratings, property appraisals and sales.
Revenue from Bank of America's consumer unit sank 5% to $10 billion in the quarter, primarily due to lower deposit balances.
Bank of America also took a $700 million charge in the reported quarter to replenish a government deposit insurance fund, drained by $16 billion to cover depositors of two banks that collapsed in 2023.
Profit from BofA's Merrill wealth management division rose about 10% to $1 billion as rising equity values generated higher fees with record revenue and client balances.
The division grew assets under management to $1.4 trillion from $1.3 trillion in the fourth quarter.
Reporting by Saeed Azhar in New York and Mehnaz Yasmin in Bengaluru;additional reporting by Sinead Carew; Editing by Lananh Nguyen, Shinjini Ganguli and Nick Zieminski
https://www.reuters.com/business/financ ... 024-04-16/
"Bank of America profit hurt by losses on credit cards, office loans"
By Saeed Azhar and Mehnaz Yasmin
April 16, 2024
NEW YORK, April 16 (Reuters) - Bank of America shares on Tuesday fell more than 3% after its first-quarter profits shrank and the bank set aside more money to cover souring loans from consumers whose finances are worsening.
U.S. lenders have cited resilient household finances as evidence that the economy remains on a solid footing, but cracks are starting to show for the lowest-income consumers.
While their spending remains robust despite rising borrowing costs, higher prices and shrinking savings, banks are preparing for more Americans to miss payments.
"The market has used Bank of America as the bellwether for consumer commentary," said David Wagner, a portfolio manager at Aptus Capital Advisors.
"The weakness in credit card delinquencies caught them offside."
BofA's net charge-offs, or debts that are unlikely to be recovered, rose to $1.5 billion in the first quarter from $807 million a year earlier, mainly from credit card losses.
The charge-offs are from delinquencies in the fourth quarter, but are beginning to stabilize, said Alastair Borthwick, chief financial officer.
"The main economic hangover for Bank of America as well as most other banks is that Federal Reserve interest rates may not decline as quickly as previously expected," said Michael Ashley Schulman, chief investment officer of California-based investment firm Running Point, which advises wealthy families.
"Therefore they may see an uptick in consumer and business delinquencies and defaults, especially from real estate."
"One good quarter from the bank is not going to allay these macro concerns."
Despite Tuesday's decline, BofA shares were up about 3% this year, lagging the S&P 500 bank index's 4.7% increase and a 6% gain for rival JPMorgan.
BofA's net interest income (NII) — the difference between what it earns on loans and pays for deposits — slid 3% to $14 billion as it paid more to customers to park their money while demand from borrowers stayed modest.
But it was turning more optimistic.
"We continue to expect that Q2 will be the low point for NII and we expect the back half of 2024 to grow," Borthwick told analysts on a conference call on Tuesday.
JPMorgan, the largest U.S. lender, slightly increased its estimate for NII, disappointing investors who hoped that the bank would reap even greater benefits from a prolonged period of higher interest rates.
BofA's CEO Brian Moynihan told analysts the bank had cut the workforce by more than 4,700 employees from the first quarter of 2023.
SHIFTING EXPECTATIONS
Excluding one-off items, Bank of America earned 83 cents a share in the first quarter, ahead of analysts' average estimate of 76 cents a share, according to LSEG data.
Still, shifting expectations for U.S. interest rate cuts and an uncertain economic outlook have made it more difficult to predict future profits, banking executives said last week.
If the Federal Reserve keeps rates higher for longer in the coming months, lenders that made bumper profits from rising interest rates in the last two years could build on their gains.
But their earnings could diminish if a potential economic slowdown deters borrowers from taking out loans.
"Generally speaking, higher for longer is probably better for banks," said Borthwick.
"Inflation is under control ... that appears to be the case."
"So that's obviously a good place."
A resilient U.S. economy, buoyant equities and a flurry of large deals have reignited hopes of a nascent recovery in dealmaking, although industry executives have expressed guarded optimism.
Investment banking fees jumped 35% to $1.6 billion from a year earlier, partially offsetting a decline in interest payments due to slow demand from borrowers.
Last month, Borthwick said he expected investment banking revenue to jump 10% to 15% in the first quarter.
Revenue from the segment also rose at rival JPMorgan and Citigroup in the first quarter, fueled by gains in debt and equity capital markets.
BofA's sales and trading revenue rose 2% to $5.2 billion with equities contributing a 15% jump and fixed income currencies and commodities posting a 4% decline.
COMMERCIAL REAL ESTATE
Bank of America set aside $1.3 billion in provisions for credit losses in the first quarter, up from $931 million a year earlier.
It also took more writedowns on office loans, which partly increased loan losses for its commercial division.
Still, its CFO said the lender had limited commercial real estate exposure and was reviewing ratings, property appraisals and sales.
Revenue from Bank of America's consumer unit sank 5% to $10 billion in the quarter, primarily due to lower deposit balances.
Bank of America also took a $700 million charge in the reported quarter to replenish a government deposit insurance fund, drained by $16 billion to cover depositors of two banks that collapsed in 2023.
Profit from BofA's Merrill wealth management division rose about 10% to $1 billion as rising equity values generated higher fees with record revenue and client balances.
The division grew assets under management to $1.4 trillion from $1.3 trillion in the fourth quarter.
Reporting by Saeed Azhar in New York and Mehnaz Yasmin in Bengaluru;additional reporting by Sinead Carew; Editing by Lananh Nguyen, Shinjini Ganguli and Nick Zieminski
https://www.reuters.com/business/financ ... 024-04-16/
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
REUTERS
"Yellen says US working to mitigate risks to global economy"
By Andrea Shalal
April 16, 2024
WASHINGTON, April 16 (Reuters) - U.S. Treasury Secretary Janet Yellen on Tuesday said a stronger-than-expected U.S. economic growth had helped power the global economy, and Washington was working to mitigate remaining risks to the global outlook and ensure sustainable long-term growth.
In remarks prepared for a news conference, Yellen said the U.S. labor market was remarkably healthy and inflation was down significantly from its peak, although there was more work to do.
She said she expected the U.S. economy to continue to underpin the global economy, but acknowledged that the global recovery had been uneven and risks remained.
"From the start of the administration, President (Joe) Biden has made clear that American isolationism was over," Yellen said.
"So while we expect that America’s economic strength will continue to underpin global growth, we’ve also been engaging with the world to mitigate short-term risks and support sustainable long-term growth."
That work will continue at this week's spring meetings of the International Monetary Fund and World Bank, where Yellen will meet with officials from China, South Korea, Japan, Britain and many other countries.
Yellen said she raised concerns with Chinese officials during her visit to Guangzhou and Beijing earlier this month about the risks that its manufacturing overcapacity posed to the United States and the global economy.
This week, she said U.S. and Chinese officials will hold the fourth meetings of the Economic and Financial Working Groups, which will focus on anti-money laundering and balanced growth.
Yellen said she also planned to work with Brazil, current president of the Group of Twenty (G20) major economies, including on a review of the global climate finance architecture.
The United States would also keep pushing for reforms at the World Bank and other multilateral development banks (MDBs) to expand their lending capacity to help developing countries deal with climate change, pandemics and other challenges that posed risks to global growth.
"No one country can tackle these issue alone, nor is bilateral action sufficient, so we've pushed for decisive and coordinated action," she said.
Yellen said the World Bank and other MDBs had made significant progress, boosting lending capacity over the next decade by $200 billion from responsibly stretching balance sheets and another $50 billion from capital increases at the European Bank for Reconstruction and Development and the Inter-American Development Bank.
At the IMF, she said, the United States was focused on strengthening the global lender's ability to respond to crises and was pushing the IMF to structure loans with "robust policy conditionality" to enable countries to restore stability.
Reporting by Andrea Shalal; Editing by Chizu Nomiyama
https://www.reuters.com/markets/us/yell ... 024-04-16/
"Yellen says US working to mitigate risks to global economy"
By Andrea Shalal
April 16, 2024
WASHINGTON, April 16 (Reuters) - U.S. Treasury Secretary Janet Yellen on Tuesday said a stronger-than-expected U.S. economic growth had helped power the global economy, and Washington was working to mitigate remaining risks to the global outlook and ensure sustainable long-term growth.
In remarks prepared for a news conference, Yellen said the U.S. labor market was remarkably healthy and inflation was down significantly from its peak, although there was more work to do.
She said she expected the U.S. economy to continue to underpin the global economy, but acknowledged that the global recovery had been uneven and risks remained.
"From the start of the administration, President (Joe) Biden has made clear that American isolationism was over," Yellen said.
"So while we expect that America’s economic strength will continue to underpin global growth, we’ve also been engaging with the world to mitigate short-term risks and support sustainable long-term growth."
That work will continue at this week's spring meetings of the International Monetary Fund and World Bank, where Yellen will meet with officials from China, South Korea, Japan, Britain and many other countries.
Yellen said she raised concerns with Chinese officials during her visit to Guangzhou and Beijing earlier this month about the risks that its manufacturing overcapacity posed to the United States and the global economy.
This week, she said U.S. and Chinese officials will hold the fourth meetings of the Economic and Financial Working Groups, which will focus on anti-money laundering and balanced growth.
Yellen said she also planned to work with Brazil, current president of the Group of Twenty (G20) major economies, including on a review of the global climate finance architecture.
The United States would also keep pushing for reforms at the World Bank and other multilateral development banks (MDBs) to expand their lending capacity to help developing countries deal with climate change, pandemics and other challenges that posed risks to global growth.
"No one country can tackle these issue alone, nor is bilateral action sufficient, so we've pushed for decisive and coordinated action," she said.
Yellen said the World Bank and other MDBs had made significant progress, boosting lending capacity over the next decade by $200 billion from responsibly stretching balance sheets and another $50 billion from capital increases at the European Bank for Reconstruction and Development and the Inter-American Development Bank.
At the IMF, she said, the United States was focused on strengthening the global lender's ability to respond to crises and was pushing the IMF to structure loans with "robust policy conditionality" to enable countries to restore stability.
Reporting by Andrea Shalal; Editing by Chizu Nomiyama
https://www.reuters.com/markets/us/yell ... 024-04-16/