This week in Bidenomics: Democrats lose the midterms
For Democrats to have a fighting chance of keeping control of Congress this year, they needed inflation to show marked improvement in May, followed by steady declines through the summer and fall. Some economists thought (hoped?) inflation had peaked for the cycle in March, when it hit 8. Gasoline prices, up 49% year over year, get the most attention, especially with average prices now likely to crest $5 per gallon. Biden is right when he says the economy is much stronger than people give it credit for. The specifics of the economy don’t matter to most voters, because things simply feel wrong.
The oil squeeze could get worse as Europe tries to wean itself from Russian energy and the United States looks for ways to further tighten sanctions on Russia, with the Ukraine war looking like a painful slog through the summer and into the fall. [Follow Rick Newman on Twitter, sign up for his newsletter or send in your thoughts. Much of this isn’t Biden’s fault, but Democrats would have a tough time keeping control of Congress even if the economy was great and the world was at peace. Nasty inflation is now likely to clinch a Republican retake of the House. The Senate battle is closer, with the Center for Politics predicting 49 seats likely to go Republican and 47 likely to go Democratic.
It’s likely to be a tumultuous summer, with the Supreme Court poised to overturn the Roe v. Rick Newman is the author of four books, including “Rebounders: How Winners Pivot from Setback to Success. Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn
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