Welcome to Extreme Investor Network, where we provide you with unique insights and analysis into the world of trading, the stock market, and everything related to Wall Street. Today, we are going to dive into the impact of recent events on inflation, the job market under different administrations, and the technical outlook for the U.S. Dollar after the 2024 election.
As we all know, the pandemic brought about significant changes in the economy. The Trump administration introduced stimulus measures to support households and businesses, resulting in a gradual increase in inflation. When Joe Biden took office, the impact of the pandemic continued, along with further stimulus efforts under his administration and other factors like supply chain issues and geopolitical tensions. This led to a notable increase in the Consumer Price Index (CPI) in the early stages of Biden’s presidency.
To combat rising inflation, Biden’s administration introduced the Inflation Reduction Act of 2022, focusing on various measures to alleviate long-term inflationary pressures. The Federal Reserve took action by raising interest rates 11 times within two years to bring inflation closer to the desired 2% mark. However, ongoing debates about the direction of future rate cuts and the recent rate cut in September 2024 have caused volatility in stocks and commodities.
When it comes to the job market, there were distinct patterns under the Trump and Biden administrations. Job openings grew steadily during Trump’s tenure until a peak in late 2018 before declining. The pandemic caused a contraction in job numbers, but openings rebounded to levels similar to the averages seen during Trump’s term. In contrast, Biden’s presidency saw a surge in job growth, fueled by the post-pandemic economic recovery and fiscal policies like the American Rescue Plan Act.
Looking at the technical outlook for the U.S. Dollar after the 2024 election, the U.S. Dollar Index has shown interesting trends. It broke out of a long-term downtrend line during Obama’s tenure, fluctuated, and then rallied during Biden’s presidency. The index is currently trading within a blue channel, with recent price patterns indicating weakness and a potential decline towards a significant support level.
Despite recent volatility and the Federal Reserve’s rate cut, the overall technical picture for the U.S. dollar remains bearish. Keep an eye on how these factors unfold, as they can have a significant impact on the stock market and trading strategies moving forward. Stay tuned to Extreme Investor Network for more exclusive insights and analysis.