Connect with us

Economics

How did the Iowa result change the Republican primary?

Published

on

Listen to this story.
Enjoy more audio and podcasts on iOS or Android.

Your browser does not support the <audio> element.

Donald Trump dominated public-opinion polling before the Republican presidential primary in 2023. Yet his rivals could reasonably argue that the party faithful still had not cast any votes, and the actual results might reveal a greater appetite for an alternative than surveys suggested. Mr Trump’s decisive victory in the Iowa caucus on January 15th seems to have put an end to that hopeful theory.

Some Republicans had predicted record attendance at Iowa’s caucuses this year, but turnout fell by around 40% from the peak in 2016. No doubt many voters opted to stay at home given the sub-zero temperatures and Mr Trump’s apparent invincibility. But TV networks also began calling the race for the former president less than an hour after the caucuses began; some caucus-goers were even told that he had won before they had a chance to vote.

Naming a victor while others are still voting was bad democratic hygiene but unlikely to sway the eventual outcome. Mr Trump won 51% of the vote and half of Iowa’s 40 delegates to the Republican National Convention. Ron DeSantis, the governor of Florida, took second place with 21% and nine delegates. Nikki Haley, a former South Carolina governor, fell to third with 19% and eight delegates. Vivek Ramaswamy, a bloviating biotech entrepreneur, finished fourth and dropped out. The first-time candidate, whose speeches were frequently ominous, kept it weird until the very end: “There’s no path for me to be the next president absent things that we don’t want to see happen in this country.”

The only hope for Mr DeSantis and Ms Haley is that a candidate needs 1,215 delegates to become the nominee, and nearly 2,400 are still up for grabs. Both runners-up agree that a head-to-head slog with Mr Trump over the next several months is the only path to victory. The problem is that neither is willing to back down in order to let the other become the former president’s sole challenger.

“I can safely say, tonight Iowa made this Republican primary a two-person race,” a smiling Ms Haley declared after finishing third. Betsy Ankney, her campaign manager, argued in a memo published after the results came in that “the race now moves to less Trump-friendly territory. And the field of candidates is effectively down to two, with only Trump and Nikki Haley having substantial support in both New Hampshire and South Carolina.”

Ms Haley, endorsed by New Hampshire’s Republican governor, is betting that a surprise victory on January 23rd would provide momentum ahead of the South Carolina contest a month later. But if she pulls off an unlikely upset, it will be thanks to support from moderate Republicans, independents and strategically minded Democrats who loathe Mr Trump. That coalition might win a state of 1.4m but isn’t fit for purpose in a national Republican primary.

A Haley win in New Hampshire is a long shot. A polling average from FiveThirtyEight, a data-journalism website, shows Mr Trump with 44.4% in New Hampshire compared with Ms Haley’s 31.4%. Chris Christie, a former New Jersey governor and Mr Trump’s most direct critic, stood at third place before dropping out. He disparaged Ms Haley ahead of his exit and declined to endorse a candidate. Mr DeSantis fares even worse in New Hampshire polling than Mr Ramaswamy did in Iowa.

The DeSantis campaign exudes confidence nevertheless. “While it may take a few more weeks to fully get there, this will be a two-person soon enough,” says Andrew Romeo, communications director for Mr DeSantis. “Despite spending $24m in false negative ads against Ron DeSantis, Nikki Haley couldn’t buy herself the kill shot she so desperately wanted [in Iowa], and now she will be out of this race after failing to win her home state on February 24.” That state is South Carolina, where Mr Trump has nearly 55% of likely primary-goers, according to FiveThirtyEight. Ms Haley trails him by 30 points, while Mr DeSantis is at about 12%.

Ms Haley may think a third-place finish in Iowa was enough to make this a two-person race, and Mr DeSantis that a third-place finish in South Carolina will do the trick for him. Both camps seem to confuse barely surviving with building momentum. Nor is it clear whether they will have the financial wherewithal to sustain an expensive multi-state campaign.

The coming contests in New Hampshire and South Carolina could inject some life into the Haley campaign. Perhaps Mr DeSantis will raise the cash needed to hang on. But Mr Trump’s lead in national polling—around 55 points above Mr DeSantis and Ms Haley, according to The Economist’s tracker—means that there wouldn’t be much of a race even if one of the remaining candidates dropped out. Mr Trump’s ongoing legal travails have only helped cement his bond with Republican primary voters.

Mr Trump’s campaign called for an end to primary debates and for a focus on beating Joe Biden months ago. The candidate probably won’t gain an insurmountable lead until March 5th, “Super Tuesday”, when more than a third of delegates will be up for grabs. But on the night of the caucuses he clearly had his eyes on November. He called his Republican opponents “very smart people, very capable people” and declared: “We’re going to come together. It’s going to happen soon.”

Stay on top of American politics with Checks and Balance, our weekly subscriber-only newsletter, which examines the state of American democracy and the issues that matter to voters.

Economics

Donald Trump has many ways to hurt Elon Musk

Published

on

THERE WAS a time, not long ago, when an important skill for journalists was translating the code in which powerful people spoke about each other. Carefully prepared speeches and other public remarks would be dissected for hints about the arguments happening in private. Among Donald Trump’s many achievements is upending this system. In his administration people seem to say exactly what they think at any given moment. Wild threats are made—to end habeas corpus; to take Greenland by force—without any follow-through. Journalists must now try to guess what is real and what is for show.

Continue Reading

Economics

Donald Trump has many ways to hurt Elon Musk

Published

on

THERE WAS a time, not long ago, when an important skill for journalists was translating the code in which powerful people spoke about each other. Carefully prepared speeches and other public remarks would be dissected for hints about the arguments happening in private. Among Donald Trump’s many achievements is upending this system. In his administration people seem to say exactly what they think at any given moment. Wild threats are made—to end habeas corpus; to take Greenland by force—without any follow-through. Journalists must now try to guess what is real and what is for show.

Continue Reading

Economics

Jobs report May 2025:

Published

on

U.S. payrolls increased 139,000 in May, more than expected; unemployment at 4.2%

Hiring decreased just slightly in May even as consumers and companies braced against tariffs and a potentially slowing economy, the Bureau of Labor Statistics reported Friday.

Nonfarm payrolls rose 139,000 for the month, above the muted Dow Jones estimate for 125,000 and a bit below the downwardly revised 147,000 that the U.S. economy added in April.

The unemployment rate held steady at 4.2%. A more encompassing measure that includes discouraged workers and the underemployed also was unchanged, holding at 7.8%.

Worker pay grew more than expected, with average hourly earnings up 0.4% during the month and 3.9% from a year ago, compared with respective forecasts for 0.3% and 3.7%.

“Stronger than expected jobs growth and stable unemployment underlines the resilience of the US labor market in the face of recent shocks,” said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management.

Nearly half the job growth came from health care, which added 62,000, even higher than its average gain of 44,000 over the past year. Leisure and hospitality contributed 48,000 while social assistance added 16,000.

On the downside, government lost 22,000 jobs as efforts to cull the federal workforce by President Donald Trump and the Elon Musk-led Department of Government Efficiency began to show an impact.

Stock market futures jumped higher after the release as did Treasury yields.

Though the May numbers were better than expected, there were some underlying trouble spots.

The April count was revised lower by 30,000, while March’s total came down by 65,000 to 120,000.

There also were disparities between the establishment survey, which is used to generate the headline payrolls gain, and the household survey, which is used for the unemployment rate. The latter count, generally more volatile than the establishment survey, showed a decrease of 696,000 workers. Full-time workers declined by 623,000, while part-timers rose by 33,000.

“The May jobs report still has everyone waiting for the other shoe to drop,” said Daniel Zhao, lead economist at job rating site Glassdoor. “This report shows the job market standing tall, but as economic headwinds stack up cumulatively, it’s only a matter of time before the job market starts straining against those headwinds.”

The report comes against a teetering economic background, complicated by Trump’s tariffs and an ever-changing variable of how far he will go to try to level the global playing field for American goods.

Most indicators show that the economy is still a good distance from recession. But sentiment surveys indicate high degrees of anxiety from both consumers and business leaders as they brace for the ultimate impact of how much tariffs will slow business activity and increase inflation.

For their part, Federal Reserve officials are viewing the current landscape with caution.

The central bank holds its next policy meeting in less than two weeks, with markets largely expecting the Fed to stay on hold regarding interest rates. In recent speeches, policymakers have indicated greater concern with the potential for tariff-induced inflation.

“With the Fed laser-focused on managing the risks to the inflation side of its mandate, today’s stronger than expected jobs report will do little to alter its patient approach,” said Rosner, the Goldman Sachs strategist.

Friday also marks the final day before Fed officials head into their quiet period before the meeting, when they do not issue policy remarks.

Don’t miss these insights from CNBC PRO

Continue Reading

Trending