With inflation and interest rates remaining high, the stock market finally took a nosedive.
News that the Federal Reserve isn’t planning to cut interest rates is what caused the markets to tank.
And the recent stock market nosedive put some members of the DNC in panic mode.
Market plunge causes concern among Democrats
The massive global stock market plunge that took place recently is a reminder to the Democrats that Kamala Harris’ high can’t last forever.
The major downturn has demonstrated a stark reversal from the narrative that economic growth and cooling inflation were starting to take hold.
This downturn is also a stunning slap in the face for Democrats, many of whom are now concerned that a troubled economy could hurt Harris’ campaign.
Democratic National Committee member William Owen said the situation is a “tremendously huge problem” for the Harris campaign.
The member from Tennessee sent Party and campaign officials an email calling for President Biden or Kamala Harris to urge the Federal Reserve to lower interest rates.
Owen followed up with another email after the market plunge.
He wrote that “this action is equally as important as who the VP is. We cannot win if people think we’re headed into a recession.”
The stock market fluctuates naturally and shares plummeted even more sharply when Donald Trump was President in December of 2018.
However, the most recent drop is a reminder that the Biden administration has not gotten a handle on inflation.
This latest market downturn is particularly important for voters in battleground states like Arizona and Nevada where some Democrats concede that people are struggling due to the one-two punch of rising inflation and high housing costs.
A recent poll from Morning Consult revealed that approximately four out of five voters say the economy is “very important” when determining who to vote for this November.
Even though Trump’s lead over Harris is smaller than it was with Biden, he still has the advantage when it comes to the issue of the economy.
If unemployment spikes, it could hurt Kamala Harris’ argument that the administration has been successful for the economy as a whole.
It’s the economy, stupid
Mark Longabaugh, a top strategist for Bernie Sanders’ (I-VT) Presidential campaigns, said that “we, as Democrats, need to be honest. There are still voters out there who are concerned about [the] cost of living. Prices are the challenge we’ve faced all year. That hasn’t gone away.”
“To a large degree, the economic elements are already baked into the feelings of the electorate,” he added.
Meanwhile, the Harris campaign faces a serious risk of seeing a major economic downturn before the election.
Any more negative changes to the economy could undermine the campaign’s argument that they’ve achieved success in that arena.
Chief economist for Moody’s Analytics, Mark Zandi, said that “there’s some fault lines. The only thing that’s been keeping the labor market together as well as it has, has been low layoffs.”
Patriot Political will keep you up-to-date on any developments to this ongoing story.
