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THE CRISIS along America’s southern border is a political liability for Joe Biden. Polling suggests that just 27% of Americans approve of the president’s handling of immigration; more than twice as many say they trust Donald Trump, his likely challenger in November’s election. Increased migration is not all down to policymaking in Washington, DC. But our ten charts below show how the problem has worsened over recent administrations.
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Start with the number of undocumented, or illegal, migrants crossing the border. By these numbers Mr Biden is a clear outlier. During his presidency there have been record numbers of apprehensions and expulsions at the border; nearly 250,000 people crossed in November alone.
The president with the lowest number of arrivals in at least four decades is Barack Obama. During his first term yearly apprehensions averaged out at just 431,000, down from an average of 1.2m in the 1980s through to the early 2000s.
Numbers began to rise again under Mr Trump. In 2019 the surge was so great that a quarter of the recent arrivals were released into the country, as government detention facilities and local jails struggled to keep up.
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America’s tight labour market increases the incentive for people looking to earn a better living. Wars and global instability are also playing a part. Whereas most migrants used to come from just Mexico and the Northern Triangle (El Salvador, Guatemala and Honduras), people from these countries now make up less than two-thirds of all those apprehended (see chart 2). The share of Venezuelans is growing, and tens of thousands of people from as far as India, Russia and China are also seeking asylum in America.
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All this is putting pressure on the country’s overstretched immigration courts. Our third chart shows that the backlog of cases more than doubled during Mr Trump’s presidency, and doubled again under Mr Biden—the backlog now stands at more than 3m.
The number of judges who deal with these cases has risen steadily over time, though not by enough to make a dent. If America’s 659 immigration judges ruled on four cases every business day it would still take them more than four years to clear the docket (without adding any other cases). The Congressional Research Service, a government body, reckons that even doubling the number of judges would not clear the backlog until 2032.
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Our fourth chart shows what this backlog means for asylum waiting times. Judges reached a decision on only around 70,000 applications in the 12 months to October. Most of those cases are likely to have been several years old. The long wait is a further incentive for migrants to cross the border illegally, even if they have a weak claim to asylum. The low chance of detention means they could get at least a few years’ work in America before a decision is even made.
Roughly equal numbers of people were granted and denied the right to stay in the past two years. That is far more than in Mr Trump’s day, when only around a third of rulings ended in asylum being granted.
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Handling these cases is all the more difficult when families and children are involved. Immigration detention centres were built to house single adult men, not families and children. Encounters of unaccompanied children reached similar peaks under both Mr Obama and Mr Trump (though the latter’s administration also separated children from their parents, meaning the true number was even higher). During the most recent wave, under Mr Biden, the number has rocketed (see chart 5).
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Despite these pressures, the number of agents hired to patrol the border has barely budged since at least 2014. In the 2017 fiscal year, during which Mr Trump was elected president, there were 746 fewer agents than the year before. In the year of the 2020 election, the number rose by less than 100. Funding for Customs and Border Protection (CBP), the agency charged with patrolling America’s borders, has stalled amid partisan fighting. Adjusted for prices, this fiscal year’s requested budget for the agency is roughly the same as it was in 2018.
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Detaining illegal migrants can be done by CBP officers at the border, or by the Immigration and Customs Enforcement (ICE) agency anywhere in the country. Mr Trump enjoyed the show of force that came with ICE raids; they were a prominent feature of his time in office. Arrests peaked in May 2019, when roughly 57,000 people were taken into custody. That has since dropped to roughly 20,000 per month during Mr Biden’s term.
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Some of these detentions will lead to deportations, rates of which have fallen since Mr Obama left office (he was nicknamed “deporter-in-chief” among rights groups). Annual “non-citizen removals” were on average 22% higher in his second term than in Mr Trump’s time in office.
The current administration has taken a different approach. On the campaign trail in 2020 Mr Biden promised a pathway to citizenship for some unauthorised immigrants already in America. Deportations have since dropped to record lows. ICE was told to prioritise certain people for deportation, mainly recent arrivals or those who posed a threat to national security. The perception that Mr Biden is more welcoming than his predecessor is no doubt contributing to the current surge.
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Despite the increasing number of migrants reaching the border, the amount of people actually living in America illegally had, until recently, been falling. The Pew Research Centre reckons that there were 10.5m illegal immigrants in 2021, the latest year available. That is roughly the same as in 2017 and fewer than in any other year between 2005 and 2015. It also puts illegal migrants at roughly 3% of people living in America and 22% of the country’s foreign-born population—the lowest shares since the 1990s. This data does not include estimates since the latest wave of encounters at the border; some 600,000 people are thought to have slipped through undetected in 2023. But the numbers did go down under Mr Trump and Mr Obama and in the latter years of George W. Bush’s presidency.
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Our final chart shows how America’s opinion of illegal migration has hardened, especially among the left. A poll in December 2017 found that only 12% of Democrats favoured building a wall at the southern border (one of Mr Trump’s main campaign promises in 2016). In December 2023 that rose to 32%.
Construction of the border wall, however, has done little to help. For all Mr Trump’s talk, the Obama administration added more new barriers than he managed. Building has continued under Mr Biden, though record numbers of people are still showing up. Decades of neglect wrapped up in political fighting has crippled the country’s immigration system. Our charts show that neither party has made meaningful improvements.■
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Wall Street is warning that the U.S. Department of Education’s crack down on student loan repayments may take billions of dollars out of consumers’ pockets and hit low income Americans particularly hard.
The department has restarted collections on defaulted student loans under President Donald Trump this month. For first time in around five years, borrowers who haven’t kept up with their bills could see their wages taken or face other punishments.
Using a range of interest rates and lengths of repayment plans, JPMorgan estimated that disposable personal income could be collectively cut by between $3.1 billion and $8.5 billion every month due to collections, according to Murat Tasci, senior U.S. economist at the bank and a Cleveland Federal Reserve alum.
If that all surfaced in one quarter, collections on defaulted and seriously delinquent loans alone would slash between 0.7% and 1.8% from disposable personal income year-over-year, he said.
This policy change may strain consumers who are already stressed out by Trump’s tariff plan and high prices from years of runaway inflation. These factors can help explain why closely followed consumer sentiment data compiled by the University of Michigan has been hitting some of its lowest levels in its seven-decade history in the past two months.
“You have a number of these pressure points rising,” said Jeffrey Roach, chief economist at LPL Financial. “Perhaps in aggregate, it’s enough to quash some of these spending numbers.”
Bank of America said this push to collect could particularly weigh on groups that are on more precarious financial footing. “We believe resumption of student loan payments will have knock-on effects on broader consumer finances, most especially for the subprime consumer segment,” Bank of America analyst Mihir Bhatia wrote to clients.
Economic impact
Student loans account for just 9% of all outstanding consumer debt, according to Bank of America. But when excluding mortgages, that share shoots up to 30%.
Total outstanding student loan debt sat at $1.6 trillion at the end of March, an increase of half a trillion dollars in the last decade.
The New York Fed estimates that nearly one of every four borrowers required to make payments are currently behind. When the federal government began reporting loans as delinquent in the first quarter of this year, the share of debt holders in this boat jumped up to 8% from around 0.5% in the prior three-month period.
To be sure, delinquency is not the same thing as default. Delinquency refers to any loan with a past-due payment, while defaulting is more specific and tied to not making a delayed payment with a period of time set by the provider. The latter is considered more serious and carries consequences such as wage garnishment. If seriously delinquent borrowers also defaulted, JPMorgan projected that almost 25% of all student loans would be in the latter category.
JPMorgan’s Tasci pointed out that not all borrowers have wages or Social Security earnings to take, which can mitigate the firm’s total estimates. Some borrowers may resume payments with collections beginning, though Tasci noted that would likely also eat into discretionary spending.
Trump’s promise to reduce taxes on overtime and tips, if successful, could also help erase some effects of wage garnishment on poorer Americans.
Still, the expected hit to discretionary income is worrisome as Wall Street wonders if the economy can skirt a recession. Much hope has been placed on the ability of consumers to keep spending even if higher tariffs push product prices higher or if the labor market weakens.
LPL’s Roach sees this as less of an issue. He said the postpandemic economy has largely been propped up by high-income earners, who have done the bulk of the spending. This means the tide-change for student loan holders may not hurt the macroeconomic picture too much, he said.
“It’s hard to say if there’s a consensus view on this yet,” Roach said. “But I would say the student loan story is not as important as perhaps some of the other stories, just because those who hold student loans are not necessarily the drivers of the overall economy.”
A woman walks in an aisle of a Walmart supermarket in Houston, Texas, on May 15, 2025.
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U.S. consumers are becoming increasingly worried that tariffs will lead to higher inflation, according to a University of Michigan survey released Friday.
The index of consumer sentiment dropped to 50.8, down from 52.2 in April, in the preliminary reading for May. That is the second-lowest reading on record, behind June 2022.
The outlook for price changes also moved in the wrong direction. Year-ahead inflation expectations rose to 7.3% from 6.5% last month, while long-term inflation expectations ticked up to 4.6% from 4.4%.
However, the majority of the survey was completed before the U.S. and China announced a 90-day pause on most tariffs between the two countries. The trade situation appears to be a key factor weighing on consumer sentiment.
“Tariffs were spontaneously mentioned by nearly three-quarters of consumers, up from almost 60% in April; uncertainty over trade policy continues to dominate consumers’ thinking about the economy,” Surveys of Consumers director Joanne Hsu said in the release.
Inflation expectations are closely watched by investors and policymakers. Federal Reserve Chair Jerome Powell has said the central bank wants to make sure long-term inflation expectations do not rise because of tariffs before resuming rate cuts.
A final consumer sentiment index for the month is slated to be released on May 30, and will likely be closely watched to see if the tariff pause led to an improvement in sentiment.
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Jamie Dimon, chief executive officer of JPMorgan Chase & Co., speaks during the 2025 National Retirement Summit in Washington, DC, US, on Wednesday, March 12, 2025.
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Wall Street titan Jamie Dimon said Thursday that a recession is still a serious possibility for the United States, even after the recent rollback of tariffs on China.
“If there’s a recession, I don’t know how big it will be or how long it will last. Hopefully we’ll avoid it, but I wouldn’t take it off the table at this point,” the JPMorgan Chase CEO said in an interview with Bloomberg Television.
Specifically, Dimon said he would defer to his bank’s economists, who put recession odds at close to a toss-up. Michael Feroli, the firm’s chief U.S. economist, said in a note to clients on Tuesday that the recession outlook is “still elevated, but now below 50%.”
Dimon’s comments come less than a week after the U.S. and China announced that they were sharply reducing tariffs on one another for 90 days. The U.S. has also implemented a 90-day pause for many tariffs on other nations.
Thursday’s comments mark a change for Dimon, who said last month before the China truce that a recession was likely.
He also said there is still “uncertainty” on the tariff front but the pauses are a positive for the economy and market.
“I think the right thing to do is to back off some of that stuff and engage in conversation,” Dimon said.
However, even with the tariff pauses, the import taxes on goods entering the United States are now sharply higher than they were last year and could cause economic damage, according to Dimon.
“Even at this level, you see people holding back on investment and thinking through what they want to do,” Dimon said.