U.S. stocks reappeared in a nightmare on Monday (13th), and nowDow JonesWhite House spokeswoman Karine Jean-Pierre said the White House is closely watching the stock market after giving up all of the gains since President Biden took office.
Dow JonesIt closed down 876.05 points or 2.79% on Monday to close at 30,516.74 points, dropping to its lowest level since January last year, giving back all gains since Biden took office. Recession concerns.
In this regard, Jean-Pierre said: “As you know, we are watching (the stock market) closely, we know that households are worried about inflation and the stock market, which is also what the president really cares about.”
She also said that the United States is facing global challenges. Putin’s invasion of Ukraine and the new crown pneumonia epidemic have both caused inflation to rise. The United States is not the only country in the world facing inflation problems.
Data released by the U.S. Labor Department last Friday showed that the consumer price index rose 8.6% in May from a year earlier, the largest increase since December 1981 and higher than the 8.3% expected by economists last month. Inflation worsened.
The White House has repeatedly insisted that economic growth and low unemployment have given the U.S. the ability to fight inflation, but gross domestic product (GDP) contracted in the first quarter and the Fed began tightening monetary policy. Unemployment is unlikely to remain low if the U.S. economy falls into recession, as the market expects.
Morgan Stanley Chief Executive James Gorman on Monday predicted about a 50 percent chance of a U.S. recession, up from his 30 percent estimate, adding that inflation is not a short-lived phenomenon and the Fed must step up.