By Matt Vespa, Townhall
Political analyst Charlie Cook warned Democrats recently: you can’t count on any more good news to break your way. The August spending bill and the abortion hysterics gave Democrats a slight boost as the dog days of summer ended—but that’s over. Voters don’t care about the Democrats’ inflationary spending bill, and the abortion rage has died. The September consumer index report was an abject disaster that set the markets ablaze. It was a vicious punch to the face reminding voters that inflation is very much the economic elephant in the room. It’s not the development Democrats wanted to return less than a month away from the 2022 midterms. On top of the economic recession, crime is now creeping back into the national consciousness. If Democrats felt that the stream of bad news would end—they would be wrong. Bank of America now expects the economy to shed 175,000 jobs a month soon (via KSL):
The Federal Reserve’s fight to squash inflation will cause the U.S. economy to start losing tens of thousands of jobs a month beginning early next year, Bank of America warns.
Although the jobs market remained surprisingly strong in September, the Fed is working hard to change that by aggressively raising interest rates to ease demand for everything from cars and homes to appliances.
The pace of job growth is expected to be roughly cut in half during the fourth quarter of this year, Bank of America told clients in a report Friday.
As pressure from the Fed’s war on inflation builds, nonfarm payrolls will begin shrinking early next year, translating to a loss of about 175,000 jobs a month during the first quarter, the bank said. Charts published by Bank of America suggest job losses will continue through much of 2023.
“The premise is a harder landing rather than a softer one,” Michael Gapen, head of U.S. economics at Bank of America, told CNN in a phone interview Monday.
Joe Biden says he’s leading us through the most significant economic recovery in American history. Yet, we’re in a recession, inflation is at a 40-year high, and massive job losses are on the horizon.