President Joe Biden expressed his satisfaction with recent data showing inflation cooling at a faster rate than anticipated. In a statement, Biden hailed the report as evidence of “Bidenomics in action,” emphasizing that the economy remains robust even as inflation recedes. The positive news not only bodes well for the economy but also for Biden himself, as a strong economy typically benefits an incumbent president. Moreover, the decline in inflation could defuse criticism from his opponents.
The Bureau of Labor Statistics released the consumer price index (CPI) report for June, a widely used measure of inflation. Year over year, inflation rose by 3%, marking its lowest level in over two years. On a monthly basis, the index, which encompasses a wide range of goods and services, increased by 0.2%. Excluding food and energy costs, the core CPI increased by 4.8% compared to the previous year and 0.2% on a monthly basis.
Biden highlighted the positive impact on American workers, stating that “real wages for the average American worker are now higher than they were before the pandemic,” with lower-wage workers experiencing the most significant gains. He attributed this progress to deliberate efforts to create jobs and reduce costs for families, declaring that these achievements were not accidental. The president pledged to continue fighting for lower costs and improved living standards for families across the nation.
Economic Advisor Echoes Optimism
Lael Brainard, the Director of the National Economic Council, echoed President Biden’s optimism in a speech at the Economic Club of New York. Brainard celebrated the fact that the economy has defied predictions, with inflation falling despite concerns about job losses. She pointed out that the U.S. economy is exhibiting signs of moderate inflation alongside a resilient job market, contrary to earlier projections. Brainard emphasized that the U.S. has experienced a decline in annual inflation for 12 consecutive months.
Brainard also highlighted the comparative advantage of the U.S. in terms of inflation rates among G-7 nations. She noted that the U.S. currently has the lowest inflation rates, both in terms of headline and core inflation, despite having the strongest economic recovery following the pandemic.
The positive economic data provides a boost for President Biden as he seeks a second term in office. With cooling inflation and a strong economy, Biden can leverage these factors to demonstrate his administration’s effective economic policies. A thriving economy tends to favor the incumbent, potentially dampening criticism from opponents. As the recovery continues, Biden’s focus on job creation and reducing costs for families appears to be paying off, as evidenced by the improving real wages for American workers.
The recent data showcasing a decline in inflation and a robust economy is a welcome development for President Joe Biden. The positive economic trends not only benefit the nation but also bolster Biden’s chances for a second term. The president and his economic advisor, Lael Brainard, emphasized the significance of these trends and expressed confidence in the path the U.S. economy is currently on. As the recovery progresses, Biden’s commitment to lower costs and job creation remains steadfast, promising continued support for American families.