Biden Approval Rating Shows Resilience As Financial Stress Rises

President Joe Biden’s approval rating is holding near its best level in more than a year, though a few cracks in the economic outlook are emerging, the new IBD/TIPP Poll finds.

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The new IBD/TIPP Poll finds that a steady 45% of Americans age 18 and up approve of how Biden is handling the presidency, and 45% disapprove, leaving flat net-approval rating for the second straight month. In February, Biden’s net-approval had edged into positive territory for the first time since December 2021, with 46% approval and 44% disapproval.

The IBD/TIPP Poll had registered a net-approval rating of -2 points in January (44%-46%) and -9 in December (40%-49%).

Biden Approval Rating Details

Amid Biden’s steady approval rating in early April, support among members of his own party was a bit less fervent, dipping to 76%-16% from 83%-10% in March.

Yet Biden’s weak standing among independents got a little less dire. Now 56% of independents pan Biden’s job performance and 28% approve, vs. 60%-22% in March.

Meanwhile, Republican disapproval of Biden was little changed at 83%-11% vs. 83%-12% last month.

Biden’s approval rating remained deep underwater among those earning less than $75,000, with 39% approval and 50% disapproval. Among those earning at least $75,000, 59% approve of Biden’s job performance, while 35% disapprove.

The Fed’s Key Inflation Rate Cooled In February; What It Means For Rate Hikes

Approval Of President Biden’s Policies

Net disapproval of Biden’s economic policies was little changed at -8 points from -9 points in the prior two IBD/TIPP Polls. Adults disapproved of Biden’s economic policies 43%-35% vs. 44%-35% in February and March.

All signs point to inflation as a major source of Biden’s poor economic reviews. U.S. employers added nearly 12.5 million jobs in the first 25 months of Biden’s presidency, Labor Department data shows. Meanwhile, the average hourly wage has grown a solid 4.6% over the past year. Yet inflation has eaten away all of that increase and more for many Americans.

The IBD/TIPP Poll finds that 28% of workers say their wages have kept pace with inflation, down from 30% in March. Meanwhile, 45% say wages haven’t kept up with inflation, up from 44% in March.

The new IBD/TIPP Financial-Related Stress Index jumped 2.3 points to 67.9, the highest since last October. Readings above 50 reflect rising stress.

The uptick in financial stress comes following expiration of a $95 monthly pandemic boost to Supplemental Nutrition Assistance Program benefits for millions of households.

Now 55% of Americans think the economy is now in a recession, up from 53% in March and February.

Investors Back Biden

Biden’s approval among investors remained strong, though narrowing to 60%-37% vs. 62%-34% in March. IBD/TIPP counts as investors those respondents who say they have at least $10,000 in household-owned mutual funds or equities.

On Friday, the S&P 500 closed at its highest level since mid-February, recouping all its losses since a banking crisis erupted last month with the sudden failure of SVB Financial Group. The Federal Reserve expects tighter bank credit to slow economic growth to a crawl later this year. Still, the outlook for fewer Fed rate hikes has been a near-term positive for financial markets.

Through Friday, the Dow Jones was down 9.6% from its all-time closing high in January 2022, but up 15.8% from its bear market closing low on Sept. 30. The S&P 500 has rallied 14.9% from its Oct. 12 closing low, but remains 14.3% below its peak. The Nasdaq composite has climbed 19.7% from its 52-week low on Dec. 28, but is still 23.9% off its November 2021 high.

Since Election Day on Nov. 3, 2020, the Dow is up 21.1%, the S&P 500 22%, and the Nasdaq 9.5%.

Be sure to read IBD’s The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.

The president’s problem is among non-investors, who now disapprove of Biden’s job performance by a 50%-36% margin, an improvement from 52%-33% in March.

The April IBD/TIPP Poll reflects online surveys of 1,365 adults from March 29-31. The results come with a credibility interval of +/- 2.8 points.

Presidential Leadership Index

The IBD/TIPP Presidential Leadership Index rose 1.2 points to 50.3, the highest level since October 2021. Readings above 50 are net positive, while below-50 readings are negative. The Presidential Leadership Index combines survey readings on how American adults feel about Biden’s personal qualities, presidential performance, and leadership attributes. Biden’s favorability rose to 52.2 from 50.5. His job approval edged up to 50 from 49.7, while the leadership index improved to 48.7 from 47.1.

Please follow Jed Graham on Twitter @IBD_JGraham for coverage of economic policy and financial markets.

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