A Tuesday survey from the Federal Reserve Bank of Richmond and a Monday survey from the Federal Reserve Bank of Dallas show more bleak signs for Biden’s economy.
“Fifth District manufacturing firms reported another decline in activity in June,” according to the Federal Reserve Bank of Richmond index. (RELATED: Fed Chair Cuts The Legs Off Biden’s ‘Putin Price Hike’ Spin)
Firms also reported being less optimistic about their economic future, as the “expectations index,” dropped from -13 to -19 over the last month.
Local business conditions worsened, too, with the “local business conditions index” decreasing to -32.
Factory activity in Texas decreased significantly in the last month, according to the survey from the Federal Reserve Bank of Dallas. The production index fell from 18.8 in May to 2.3 this month. The number is the lowest the index has reached since May of 2020.
The “new orders index,” which signals demand, decreased in June for the first time in two years, going from 3.2 to -7.3. The “future production index” which is a measure of expectations regarding future manufacturing decreased strongly in the last month, going from 19.9 to just 4.0.
“We are in a situation where inflation is high, it’s broad-based, it’s persistent, and rates are still well below normal,” Federal Reserve Bank of Richmond President Thomas Barkin says https://t.co/3XJWGvgNsI pic.twitter.com/z3wh8TrTqu
— Bloomberg TV (@BloombergTV) June 21, 2022
Treasury Secretary Janet Yellen said, “I expect the economy to slow,” in an interview with ABC’s George Stephanopoulos on June 19.
“Clearly inflation is unacceptably high, it’s President Biden’s top priority to bring it down,” Yellen, who had previously dismissed concerns about inflation, said.
But Yellen added that she didn’t think a recession was “at all inevitable.”