A survey of The Economist and Yougov published on Tuesday found that more than two thirds of Americans believe that the economy is in regular or bad conditions, just days after the Federal Reserve reduced interest rates and indicated additional cuts at the end of this year.
Key data
In the survey, which interviewed 1,551 American adults between September 19 and 22, 35% of Americans described the economy as “poor”, while 32% described it as “regular.”
The percentage of respondents described as “good” was 24%, while 4% described it as “excellent.”
Respondents between 18 and 29 represent the age group with the most critical vision of the economy: 69%say that the economy is in regular (32%) or bad conditions (37%).
Almost 75%of respondents who earn less than $ 50,000 per year consider that the economy is regular (32%) or bad (41%), while an equal number (33%) of those who earn between 50,000 and $ 100,000 per year consider it regular or bad.
The survey was conducted after the decision made by the Fed last week to reduce interest rates in a quarterfinal, between 4% and 4.25%.
The Federal Open Market Committee also said that it hopes to make two additional rates cuts by the end of the year amid concerns about a weakening of the labor market.
Large number
54%. That is the proportion of Americans who believes that the economy is getting worse, more than double the response of respondents who thought the same at the beginning of President Donald Trump’s second mandate, according to the Economist/Yougov survey.
What is the inflation rate?
Consumer prices increased 0.2% between July and August, when the inflation rate reached 2.9%. Underlying consumer prices, which exclude food and energy markets, increased 3.1% per year and 0.3% between July and August.
Key history
The president of the Federal Reserve, Jerome Powell, said during a speech on Tuesday that the weakening of the labor market was a factor in reducing interest rates, noting that “short -term risks” for inflation are “rising rise”, while the risks to employment have increased and have impacted the monetary policy of the Federal Reserve.
The unemployment rate reached 4.3% in August, exceeding the forecasts of economists of 4.2%. Powell, who did not indicate more cuts for October, said that the last cut of interest rates leaves the United States “well positioned” to respond to economic events.
The wide Trump tariff policies have contributed to the increase in the inflation rate, and Brian Coulon, chief economist of Fitch Ratings, said in a note this month that Trump’s tariffs are affecting consumer prices “slowly, quite slowly, in fact.”
This text was originally published in Forbes Us.
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