Harris is poised to capitalize on a rare economic surge in the final stretch.

Harris is poised to capitalize on a rare economic surge in the final stretch.
Harris is poised to capitalize on a rare economic surge in the final stretch.
  • The final month of the presidential campaign sees Vice President Kamala Harris with a robust jobs report and a thriving stock market.
  • Inflation has also come down and consumer sentiment is up.
  • The Biden-Harris administration's record has been under attack by Donald Trump, who has been portraying a dire image of the U.S. economy.
The September jobs report was really good for the Fed, says Douglas Holtz-Eakin

The positive jobs report on Friday has boosted optimism about the U.S. economy, just a month before the presidential race between Vice President Kamala Harris and former President Donald Trump, with voters stating that the economy is their top concern.

In September, the number of nonfarm jobs increased by 254,000, and the unemployment rate decreased to 4.1%, a decrease of 0.1 percentage points. This exceeded expectations, as the Dow Jones forecasted only 150,000 additional jobs for the month.

"According to Aaron Sojourner, a senior researcher at the W.E. Upjohn Institute for Employment Research, the report was excellent across all indicators, showing strong wage growth and increasing purchasing power for working families."

In the final leg of a fiercely fought campaign, the economy has been a major focal point, and the good news is on the horizon.

In battleground states, Harris and Trump present contrasting depictions of the U.S. job market.

Trump stated at a Michigan rally on Oct. 3 that the end of this dreadful nightmare for American workers will occur on the day he takes the oath of office.

In a CBS "60 Minutes" interview that aired Monday, Harris stated that the American economy is thriving by all macroeconomic measures, with historic low unemployment among all groups of people.

The recent economic news has been positive, and the jobs report could indicate a significant economic improvement.

"Mark Zandi, Moody's chief economist, wrote in an X post in September that he had hesitated to say this, fearing it would sound hyperbolic, but he believes this economy is among the best performing in his 35+ years as an economist."

The Federal Reserve reduced interest rates for the first time in over four years in September, as the inflation rate approached its 2% target, signaling a significant achievement in the U.S. economy's post-pandemic recovery.

In 2022, the consumer price index reached a 40-year high of 9.1%, but has since decreased to 2.5% year-over-year in August.

With consumer prices decreasing, productivity is increasing, resulting in a 3.0% annualized rate of real GDP growth in the second quarter. This could make Biden the first president since Clinton to achieve the highest average rate of productivity growth.

""Economists were hesitant to hope for this economic expansion, but it's happening and it's astonishing," said Justin Wolfers, a professor of public policy and economics at the University of Michigan."

An across-the-board tariff gives us no strategic leverage at all, says Justin Wolfers

In recent months, the stock market has consistently set new records. After the jobs report exceeded expectations, the reached a new all-time high of 42,352.75 last week. Additionally, the and the also finished the day with gains.

As a result, some companies are raising their earnings guidance, recession hawks have stopped stoking fears.

On Sept. 26, chipmaker announced that it anticipated generating $8.7 billion in first-quarter revenue, surpassing analysts' forecast of $8.3 billion. Meanwhile, cloud-computing company increased its revenue guidance, projecting to earn $66 billion in fiscal 2026, $1.5 billion more than its previous projection.

Nearly the lowest level of any presidential cycle in the last 50 years, the Misery Index, which considers both inflation and unemployment rates, is currently being analyzed by Wolfers.

Teddy Goff, digital director for Barack Obama's re-election campaign in 2012, stated that the Biden-Harris administration has destroyed the economy, as evidenced by a large amount of strong data.

Goff stated that it's evident for everyone to observe with their two eyes that the economy is thriving.

The University of Michigan's latest survey, released Sept. 27, showed that consumer sentiment jumped for the second month in a row in September, reaching its highest mark since May.

The Trump campaign ignored questions about positive economic news when contacted by CNBC.

""Joe Biden and Kamala Harris have left the country in a financial crisis, but President Trump has a plan to revive the manufacturing industry and safeguard American jobs," Leavitt stated."

It is difficult to envision numerous voters seeking improved news, according to Professor Stephanie Kelton of Stony Brook University.

"Kelton stated that when you tune in to the radio or read a newspaper, you're more likely to encounter positive news about the economy's state. He explained that there's a shift in the vibe."

by Annie Nova

Politics