A Tuesday survey from the Federal Reserve Bank of Richmond and a Monday survey from the Federal Reserve Bank of Dallas show darker signs for Biden’s economy.
“Fifth District manufacturing companies reported another drop in activity in June,” according the Federal Reserve Bank of Richmond index. (RELATED: Fed Chairman Cuts Legs From Biden’s ‘Putin Price Rise’)
Businesses also said they were less optimistic about their economic future as the “expectations index” fell from -13 to -19 over the past month.
Local economic conditions also deteriorated, with the “local economic conditions index” falling to -32.
Factory activity in Texas has dropped significantly over the past month, according to the Federal Reserve Bank of Dallas survey. 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 2020.
The “New Orders Index,” which signals demand, fell in June for the first time in two years, falling from 3.2 to -7.3. The “Future Production Index,” which measures expectations for future manufacturing, has fallen sharply over the past month, from 19.9 to just 4.0.
“We’re in a situation where inflation is high, it’s widespread, it’s persistent, and rates are still well below normal,” Federal Reserve Bank of Richmond President Thomas Barkin said. https://t.co/3XJWGvgNsI pic.twitter.com/z3wh8TrTqu
— Bloomberg Television (@BloombergTV) June 21, 2022
Treasury Secretary Janet Yellen said, “I expect the economy to slow down,” in an interview with ABC’s George Stephanopoulos on June 19.
“Clearly inflation is at an unacceptable level, it’s President Biden’s top priority to bring it down,” said Yellen, who previously dismissed concerns about inflation.
But Yellen added that she did not think a recession was “at all inevitable”.