The Washington Examiner’s Tiana Lowe Doescher referred to the fourth quarter gross domestic product as President Joe Biden’s “boon” for his reelection campaign.
Lowe Doescher appeared on Your World with Neil Cavuto on Thursday to react to the news that 2023 had finished with 3.3% annualized growth. In her opinion, the report could not have come at a better time, as the Federal Reserve could put off cutting interest rates.
“I mean, the real boon to Biden is the fact that since the Fed has pulled off a soft landing and economic growth is coming in higher than expected, a lot of that coming from government spending. That means the Fed doesn’t have to cut rates for a while,” Lowe Doescher said. “That is actually a good thing because cutting rates does run the risk that we get the rebound inflation that you saw in the ’70s.”
Still, Lowe Doescher pointed out that the annualized return from the S&P 500 market is still around 7%. Even then, much of the growth is due to the “magnificent seven” stocks which are Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms, and Tesla.
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“So it’s like the rest of the stock market isn’t doing too great. But yes, it just means that right now, we’re sort of at a good stasis where there is still growth. We’re not hitting a recession,” Lowe Doescher said. “Inflation needs to continue to come down. That is the best thing for America, and quite frankly, it’s the best thing for Biden’s reelection if he wants to hope to win this thing.”
During President Donald Trump’s term, just before the coronavirus pandemic, the S&P boasted a 36% annualized return.