What to know about the US economy as midterm elections near
The economy ranks as a top concern among voters as campaigns race toward the midterm elections early next month.
As the midterm elections approach, key aspects of the U.S. economy are shaping voter priorities. Inflation weighs heavily on consumers' budgets and overall sentiment. The Federal Reserve's target inflation rate of 2% is currently being surpassed, prompting frustration among Americans. The University of Michigan's monthly survey reflects this sentiment, with consumer sentiment at its lowest in 74 years.
Inflation's impact is evident in everyday purchases, with half or more of respondents in a recent ABC News/Washington Post/Ipsos poll labeling household purchases as unaffordable. Gasoline prices have skyrocketed, up $1.19 from February, while diesel prices have risen $2.65 per gallon compared to last year. Despite these challenges, the economy has maintained growth, expanding at an annualized rate of 3.4% over the past quarter.
This growth, driven in part by a surge in spending on artificial intelligence, contrasts with the slowdown in job additions, which averaged 68,000 per month in the first nine months of the year. Despite the fluctuations, the unemployment rate remains low, remaining consistently at 4.4% or lower since 2017.
Written by urgent.news from ABC News (US)'s reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
