The U.S. economy is delivering some of the best employment and income gains of the past 40 years, boosting workers in a way that recalls the boom years of the 1980s and 1990s.
But while the gains may help Hillary Clinton rebuff Donald Trump’s frequent attacks on the state of the nation and the Obama administration’s record, she would face a series of minefields if she wins the White House. As would Trump, if he pulls off a victory.
Economists say there is a one in five chance of recession next year. The Federal Reserve is on a march toward raising interest rates. And threats continue to flow from abroad, including the United Kingdom’s exit from the European Union and other signs of turbulence in the global economy.
A recession — or even a decline in economic momentum — could rapidly expose the new president to criticism and change the ability of the new administration to accomplish its goals.