Joe Biden turned as white as a ghost after a Wall Street economist made this prediction

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Joe Biden’s re-election chances are hanging by a thread.

His biggest obstacle to a second term could be on its way.

And Joe Biden turned as white as a ghost after a Wall Street economist made this prediction.

President Joe Biden and his allies in the media claim that everything is going great with the economy.

Citi chief U.S. economist Andrew Hollenhorst predicted that trouble is on the way for the Biden economy during an appearance on CNBC.

He said that the economy is going to go into a recession because of lingering inflation and rising credit card delinquencies.

The most recent Consumer Price Index (CPI) came in a hotter than expected 3.1% for January.

Credit card delinquencies of 90 or more days have been surging as consumers become overwhelmed by rising interest rates and a soaring cost of living.

American household debt is at a record high under Biden for auto loans, credit cards, and housing.

Hollenhorst told CNBC Money Movers co-host Sara Eisen that the Federal Reserve wouldn’t be able to stick a soft landing for the economy by lowering inflation while avoiding a recession.

“There’s this very powerful and seductive narrative around this being a soft landing and we’re just not seeing it in the data. I think that’s what we’ve seen over the past couple of days,” Hollenhorst said. “We have inflation that’s running too high, the activity data is more debatable. January, you have some big seasonal factors, so I think that’s part of why markets are a little bit skeptical of these numbers, but it was a pretty big decline in retail sales that we saw this morning.”

Eisen claimed that January’s retail sales were affected by holiday returns and winter weather and that most economic numbers were generally good.

“I think that’s the key to the economy, is what happens in the labor market,” Hollenhorst continued. “If the unemployment rate stays low, people continue to spend, the economy holds up. But if that unemployment rate starts rising, and we think it will, and I think we saw that in continuing jobless claims this morning, that’s the sign we’ll have a more material decline in activity in the U.S. economy.”

Jobless claims are on the rise and major companies have started off 2024 by announcing layoffs.

Hollenhorst said that rising credit card delinquencies are a sign Americans are running out of savings.

“I think we see that in the data, particularly in the credit card delinquency data. We just got some new data on that out last week, and you see those delinquencies that are rising,” Hollenhorst said. “What that’s telling is that there may be some consumers that still have excess savings, but those consumers that are exposed to floating rate credit card debt at much higher rates now, that have been pulling on those excess savings to continue to consume, continue to spend, now those delinquencies are picking up. So I think you are starting to see that weakness in the data.”

The Citi economist said that he saw a recession as the most likely scenario.

A recession this year would spell almost certain doom for Joe Biden in the election.

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