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‘Triple threat’: Auto strike joins a messy season for Biden’s economy
By Sam Sutton
The strike against Detroit’s Big Three automakers is hitting the U.S. economy at a precarious time — as it’s struggling with an era of high inflation and soaring borrowing costs. Combined with other emerging headwinds — rising gas prices, tightening credit, the resumption of student loan payments and shrinking household savings — the walkout could slow growth just as President Joe Biden and Federal Reserve Chair Jerome Powell are trying to steer the U.S. away from a recession….“None of these is a shot in the temple; they’re nonfatal,” Federal Financial Analytics managing partner Karen Petrou said. “But none is good, and the American public is fragile. It doesn’t take much to throw them off.” Pillars of the economy — including the job market and consumer spending — remain strong. But a protracted auto industry strike could be a significant test for Powell, who is already under pressure from progressives to relax monetary policy as inflation levels out in key segments of the economy.