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Does Joe Biden’s re-election campaign have a Gaza problem?

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IT IS NEVER nice for a campaign when a steadfast constituency turns irate and threatens to withhold their votes; it is the stuff of nightmares when they happen to reside in a swing state that may decide the next presidential election. Incensed over the Israeli military campaign in Gaza—which is fast approaching 30,000 Palestinian deaths—Muslim-American and Arab-American voters staged a campaign to withhold their votes for President Joe Biden in Michigan’s Democratic primary. Rashida Tlaib, a prominent Palestinian-American congresswoman representing the heavily Muslim western suburbs of Detroit, encouraged her fellow Democrats to vote “uncommitted”, as did most prominent Muslim officials in the state. Over 100,000 Michiganders voted “uncommitted”, representing 13.3% of the total vote.

The threat to Mr Biden is not veiled. “There is not really a path that does not go through Michigan. And there is not really a path that goes through Michigan without the Muslim community,” says Hira Khan of Emgage, a Muslim-voter mobilisation group. Michigan has had a recent spate of tight elections. In 2016 Donald Trump beat Hillary Clinton by a margin of 10,704 votes (or 0.22% of those cast); in 2020 Mr Biden won by 154,188 (or 2.78%). The state also has one of the highest concentrations of voters with Middle Eastern and Muslim backgrounds. In 2020 there were an estimated 206,000 Muslims in the electorate—roughly 2.8% of the total—and most of them probably voted for Democrats. If the anti-Gaza backlash persisted through November (including among the three-quarters of young voters who disapprove of Mr Biden’s handling of it), the effect would be marginal. But in a state like Michigan, marginal effects can matter quite a lot.

That is why the Biden campaign seemed particularly concerned. Weeks ago, it sent Julie Chávez Rodríguez, the campaign manager, to the state to meet Muslim leaders. The meeting was cancelled when all of them refused to attend. Reportedly, a suggested meeting with Vice-President Kamala Harris in Washington was also nixed. The White House dispatched senior policymakers, including Jon Finer, the deputy national security adviser. A recording of the conversation, published by the New York Times, shows Mr Finer being unusually self-critical: “We have left a very damaging impression based on what has been a wholly inadequate public accounting for how much the president, the administration and the country values the lives of Palestinians. And that began, frankly, pretty early in the conflict,” he said.

The listening sessions are only going so far. “I think they’re hearing the concerns. The problem is that they’re not acting on them yet,” says Alabas Farhat, a Democratic state representative who has been campaigning for the uncommitted vote.

Despite the display of discontent in the primary, it remains unclear how seriously the grumbling will jeopardise the president’s prospects in the general election. In 2012, when Barack Obama was running for re-election, 10.7% of Democratic primary voters in Michigan voted “uncommitted”, even though there was no concerted campaign to do so. Graded against that baseline, the 13.3% showing mustered by this campaign looks less impressive.

Back in 2012 the discontent was diffuse. This year it was concentrated. In some precincts of Dearborn, a heavily Arab-American city near Detroit, three-quarters of voters were “uncommitted”. If 100,000 Democratic voters were really willing to spoil their ballots in November in order to nix Mr Biden’s chances of winning, he would be in serious trouble. Yet the president would also face an electoral backlash were he seen to abandon Israel. In The Economist’s YouGov poll 36% of those questioned say their sympathies in the conflict are more with Israelis, while just 15% are more sympathetic to Palestinians.

Some Muslims say they are ready to abandon Biden and that his inability to restrain Israel is cause enough to make him a one-term president. Given Mr Trump’s evident antipathy to Muslim-Americans, his favour towards Israel and his general lack of concern for most things that sound like human rights, this might seem paradoxical. Ahead of the primary vote Gretchen Whitmer, the popular governor of Michigan, argued that “any vote that is not cast for Joe Biden supports a second Trump term.” Many Muslims concede that outcomes under Mr Trump would not have been better, but that there would be no offensive pretence of caring about human rights. “I prefer to be stabbed from the front than from the back,” says one.

Others say that Mr Biden can win back their support if he were to call for a permanent ceasefire, if he stops sending weapons to the Israelis and resumes funding the United Nations Relief and Works Agency (which was cut off after the Israelis said that several of its employees had taken part in Hamas’s attack on October 7th that murdered 1,200). Asked what happens in the next nine months, Abdullah Hammoud, the mayor of Dearborn, says: “That’s a question for President Biden.”

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Economics

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Who decides what legal terms mean? If it is Donald Trump, God help America

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Economics

Inflation rate slipped to 2.1% in April, lower than expected, Fed’s preferred gauge shows

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Inflation rate slipped to 2.1% in April, lower than expected, Fed’s preferred gauge shows

Inflation barely budged in April as tariffs President Donald Trump implemented in the early part of the month had yet to show up in consumer prices, the Commerce Department reported Friday.

The personal consumption expenditures price index, the Federal Reserve’s key inflation measure, increased just 0.1% for the month, putting the annual inflation rate at 2.1%. The monthly reading was in line with the Dow Jones consensus forecast while the annual level was 0.1 percentage point lower.

Excluding food and energy, the core reading that tends to get even greater focus from Fed policymakers showed readings of 0.1% and 2.5%, against respective estimates of 0.1% and 2.6%.

Consumer spending, though, slowed sharply for the month, posting just a 0.2% increase, in line with the consensus but slower than the 0.7% rate in March. A more cautious consumer mood also was reflected in the personal savings rate, which jumped to 4.9%, up from 0.6 percentage point in March to the highest level in nearly a year.

Personal income surged 0.8%, a slight increase from the prior month but well ahead of the forecast for 0.3%.

Markets showed little reaction to the news, with stock futures continuing to point lower and Treasury yields mixed.

People shop at a grocery store in Brooklyn on May 13, 2025 in New York City.

Spencer Platt | Getty Images

Trump has been pushing the Fed to lower its key interest rate as inflation has continued to gravitate back to the central bank’s 2% target. However, policymakers have been hesitant to move as they await the longer-term impacts of the president’s trade policy.

On Thursday, Trump and Fed Chair Jerome Powell held their first face-to-face meeting since the president started his second term. However, a Fed statement indicated the future path of monetary policy was not discussed and stressed that decisions would be made free of political considerations.

Trump slapped across-the-board 10% duties on all U.S. imports, part of an effort to even out a trading landscape in which the U.S. ran a record $140.5 billion deficit in March. In addition to the general tariffs, Trump launched selective reciprocal tariffs much higher than the 10% general charge.

Since then, though, Trump has backed off the more severe tariffs in favor of a 90-day negotiating period with the affected countries. Earlier this week, an international court struck down the tariffs, saying Trump exceeded his authority and didn’t prove that national security was threatened by the trade issues.

Then in the latest installment of the drama, an appeals court allowed a White House effort for a temporary stay of the order from the U.S. Court of International Trade.

Economists worry that tariffs could spark another round of inflation, though the historical record shows that their impact is often minimal.

At their policy meeting earlier this month, Fed officials also expressed worry about potential tariff inflation, particularly at a time when concerns are rising about the labor market. Higher prices and slower economic growth can yield stagflation, a phenomenon the U.S. hasn’t seen since the early 1980s.

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German inflation May 2025

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19 May 2025, Berlin: Apricots are sold at a greengrocer for 7.98 euros per kilogram. Grapes and papaya are also on offer.

Photo by Jens Kalaene/picture alliance via Getty Images

Germany’s annual inflation hit 2.1% in May approaching the European Central Bank’s 2% target but coming in slightly hotter than analyst estimates, preliminary data from statistics office Destatis showed Friday.

The print compares with a 2.2% reading in April and with a Reuters projection of 2%.

The print is harmonized across the euro zone for comparability.

So-called core inflation, which strips out more volatile food and energy prices, dipped slightly from April’s 2.8% to 2.9% in May. The closely watched services print meanwhile eased sharply, coming in at 3.4% compared to 3.9% in the previous month.

Energy prices fell markedly for the second month in a row, tumbling by 4.6% in May.

Germany’s consumer price index has been closing in on the European Central Bank’s 2% target over recent months, in a positive signal amid ongoing uncertainty about the economic outlook for Europe’s largest economy.

Domestic and global issues have mired expectations for Germany’s financial future.

One the one hand, U.S. President Donald Trump’s tariffs could damage economic growth, given Germany’s status as an export-reliant country, though the potential impact of such duties on inflation remains unclear. But frequent policy shifts and developments have been muddying the picture.

On the other hand, Germany’s newly minted government is starting to get to work and has made the economy a top priority. Questions linger about when and to what extent the new Berlin administration’s policy plans might be realized.

The ECB is set to make its next interest rate decision on June 5, with traders last pricing in an over 96% chance of a quarter point interest rate reduction, according to LSEG data. Back in April, the central bank had cut its deposit facility rate by 25 basis points to 2.25%.

This is a breaking news story, please check back for updates.

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