Biden’s re-election prospects may hinge on whether inflation slows without the economy slipping into recession, but he was quick to assess the latest data showing a slowdown in inflation in June.
“Good jobs and low costs. That’s Bidennomics in action,” Mr. Biden said in a statement Wednesday.
The White House has dubbed its economic policy “bidenomics” in recent weeks, with the president arguing that his policies keep the economy on track and maintain a healthy labor market.
Controlling inflation is the job of the Federal Reserve, but political destiny rests on whether inflation can be contained and the economy cooled enough to achieve a so-called “soft landing” without triggering a recession. It’s Mr. Biden. .
“Today’s report provides new and encouraging evidence that inflation is declining while our economy remains strong,” Biden said in a statement. “Our progress in creating jobs while reducing family costs is no accident.
The latest data show Mr. Biden may be able to achieve a moderate slowdown, but the economy still faces headwinds. The Fed, which has raised interest rates above 5% to cool the economy, is expected to raise rates again later this month.
In an interview with CBS this week, Treasury Secretary Janet L. Still, he said he was optimistic that the U.S. would not experience such a recession, although the labor market would likely soften.
“It is my hope and my belief that there is a way to lower inflation on the back of a healthy labor market,” Yellen said. there is,” he said.
Republicans on Wednesday argued that inflation was still too high and that real wages were lower than when Biden took office.
“It will take American families a long time to recover from ‘bidenomics,'” said Tommy Piggott, head of rapid response for the Republican National Committee. “The main way to make sure they do is to make Biden a one-time president.”