A paradox in the US economy is that consumers are feeling squeezed despite positive growth indicators. This is impacting President Biden’s approval ratings. The Federal Trade Commission (FTC) and several states are blocking Kroger’s $25 billion bid to buy Albertsons, citing concerns about increased prices and the impact on union workers’ bargaining power. Consumers are currently spending the highest proportion of their income on food in three decades, with grocery prices having the biggest impact on consumer sentiment. President Biden blames big business for practices like “shrinkflation” and plans to address the issue in his State of the Union address. The FTC’s aggressive stance on mergers and acquisitions may support Biden’s message.
