The stock market has reached new heights due to the “Biden Boom.”
Upon taking over an economy facing challenges and immediate pressure from the COVID-19 pandemic, President Joe Biden had a tough task ahead to kickstart the recovery process. However, recent data indicates that he has risen to the challenge, as the US stock market has seen greater increases in Biden’s first 100 days compared to any of his predecessors in the past 80 years.
Efforts to vaccinate the population against COVID-19, along with the introduction of a $1.9 trillion stimulus package, have started to rebuild consumer and investor trust in the US economy, leading to what is now referred to as the “Biden Boom.”
“The economy looks excellent. It is likely to experience the highest GDP growth in three decades,” stated Dan North, a senior economist at Euler Hermes North America Insurance Co., to The Hill.
NEW: “Biden boom” extends to stock market surge in first 100 days https://t.co/3aPq9LSqqQ pic.twitter.com/Qp2DX6A7P7
— The Hill (@thehill) April 27, 2021
Analysts on Wall Street are anticipating one of the largest GDP surges in the US since the Reagan administration as the job market regains lost positions and the nation moves closer to full reopening.
“Since Biden took office, we have witnessed a consistent increase in consumer confidence,” said John Leer, an economist at the polling firm Morning Consult. “This rise in confidence is not limited to Democrats but extends to Republicans as well.”
While confidence is currently on the rise, some economists have warned about the potential of inflation once the initial restoration excitement fades.
“We have been stimulating demand well above the economy’s capacity to produce for the next few years, leading to significant price hikes,” cautioned former Treasury Secretary Larry Summers. “All indicators point to inflation becoming more prominent.”
