Joe Biden did not get much time to gloat over the midterm elections.
The high of exceeding expectations quickly gave way.
Joe Biden received a brutal warning that will send him into panic mode.
In a post-election press conference Joe Biden restated his intention to run for re-election in 2024.
But a fellow Democrat threw some cold water on the Democrats’ prospects for 2024.
In an interview on CNBC New Jersey Democrat Governor Phil Murphy predicted an economic downturn in the coming year due to the Federal Reserve trying to choke Joe Biden’s inflation out of the system.
“You said six to 12 months you think we’ll be in a better position, I assume you mean just in terms of inflation and how it’s going on that front. Where do you think we’ll be in terms of employment? You said you are worried about what’s coming. What specifically are you worried about?” anchor Becky Quick asked Governor Murphy.
Murphy began his answer by noting that there is no historical precedent for the Federal Reserve hiking interest rates at this level – the secretive Fed handed down multiple .75 percent rate hikes over the last several months – without the economy cooling down.
Murphy even admitted a recession was likely with the one uncertainty being how deep the economy sunk into a recession.
“I’m worried that I don’t think history gives us one example…where the Fed has been this aggressive and the economy didn’t cool substantially. So, whether that’s a recession, if it’s a recession, how deep a recession, I don’t know. There’s a lot of liquidity on the sidelines. If you just look at our balance sheet, we’ve got a massive surplus, we’ve got a large shadow surplus, we’ve got unspent American Rescue Plan money, bipartisan infrastructure dollars to be spent over five years, other monies coming from the Inflation Reduction Act or the CHIPS Act from the summer,” Murphy began.
Murphy falsely claimed his own state of New Jersey was well-positioned to absorb a downturn but allowed for the fact that the economy could hit a recession.
“I don’t think our state is different than a lot of other American states. You’ve got that reality with institutions, companies, to some extent, households, all of that leads me to believe that the economy’s going to cool, but I personally don’t see this thing tanking in a very substantial way,” Murphy stated.
Jimmy Carter, George H.W. Bush, and Donald Trump all campaigned for re-election after a recession hit in their first times.
Trump’s circumstances were different as America hit a recession due to Democrat governors locking down their economies as part of the COVID panic porn.
But all three lost in their bid for a second term.
And if a recession hits in 2023 it will make Biden’s re-election campaign vastly more difficult.
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