Lonski Group founder and president John Lonski joins ‘Maria Bartirom’s Wall Street’ to discuss BlackRock’s chief investment strategist warning of inflation rebound.
Voters are headed to the polls on the biggest primary election day of the 2024 cycle with one issue in particular at the top of their minds: the state of the U.S. economy.
About one-third of Americans think that economic problems are the most important issue facing the country today, according to a monthly poll published by Gallup. That includes 12% of voters who are worried about the economy in general, and 11% who identified the high cost of living and ongoing inflation crisis as the top problem in the country.
Another 3% expressed concern about the steep federal budget deficit, while 2% said taxes.
HIGH INFLATION IS STILL SQUEEZING AMERICANS’ BUDGETS
Customers shop at a supermarket in Foster City, California, on Sept. 13, 2023. (Li Jianguo/Xinhua via Getty Images / Getty Images)
By comparison, 28% of Americans said that immigration is the No. 1 problem, while 20% said the top issue is the government and poor leadership. Another 6% identified poverty and homelessness as the biggest problems.
The findings come ahead of Super Tuesday, the day in the presidential primary cycle when the most states vote. More than one-third of Republican delegates are up for grabs in the 15 states that are voting on Tuesday. About a third of Democratic delegates will also be decided, with nominating contests in 14 states plus American Samoa.
Former President Donald Trump, the GOP front-runner, is widely expected to dominate the races as he goes up against the last standing Republican challenger, former South Carolina Gov. Nikki Haley. President Biden, as the incumbent and only major candidate for the Democrats, is also likely to sweep the races.
WHY ARE GROCERIES STILL SO EXPENSIVE?
The 2024 presidential election is widely expected to come to another head-to-head match between Trump and Biden – and the economy could be a deciding factor for many voters.
The White House has lauded a mostly steady yearlong decline in inflation, but most economists agree that is due to the Federal Reserve’s aggressive interest rate hike campaign and the resolution of supply chain disruptions, not the president’s economic agenda.
President Joe Biden during an event at the Old Post Office in Chicago, Illinois, on June 28, 2023. (Taylor Glascock/Bloomberg via Getty Images / Getty Images)
While inflation has fallen considerably from a peak of 9.1% notched during June 2022, it remains well above the Federal Reserve’s 2% goal. And when compared with January 2021, shortly before the inflation crisis began, prices are up a stunning 17.6%.
Many families have yet to see material relief. Food prices are up 33.7% from the start of 2021, while shelter costs are up 18.7%, according to FOX Business calculations. Energy prices, meanwhile, are up 32.8%.
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Chronically high prices are forcing Americans to spend about $1,019 more per month than they did three years ago, before the inflation crisis began, according to a recent estimate from Moody’s Analytics.
As they spend more on everyday goods, Americans are burning through their savings, and are increasingly turning to credit cards to cover those basic expenses.
The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily affected by price fluctuations.
