‘They Are No Longer Forecasting a Recession,’ Fed Chief Says
Outlook should brighten Biden's reelection chances
In what should almost certainly be a boost for President Biden's bid for a second, four-year term, the economic staff at the Federal Reserve is no longer predicting a recession in the nation's future.
“The staff now has a noticeable slowdown in growth starting later this year in the forecast. But given the resilience of the economy recently they are no longer forecasting a recession,” announced Federal Reserve Chair Jerome Powell, just a day after the Fed raised its key interest rate by 0.25 percent, to as much as 5.5 percent, the highest level in 22 years in an ongoing attempt to subdue inflation.
At the White House, press secretary Karine Jean-Pierre celebrated Biden's record of economic stewardship.
“Bidenomics is growing the economy from the middle out and bottom up, not the top down,” she said. “Unemployment remains at 4 percent, inflation has fallen by two thirds, wages are higher than before the pandemic and businesses have invested more than half a trillion dollars in clean energy and manufacturing. In short, the president's economic plan is indeed working.”
Further positive economic news — such as that announced by Powell — should bolster Biden's standing with the American people.
Despite moving the US economy strongly during his term in office, the president has suffered lingering poor poll numbers related to his economic stewardship.
Biden's economic approval rating stands at just 37 percent, according to a recent CNBC All-America Economic Survey. Although that is up 3 percentage points from the prior survey in April.
The percentage of American saying the economy is excellent or good rose 6 points to a still-low 20 percent.
The president's overall approval rating remains unchanged from the prior survey at 39 percent.
The economy will most certainly be a key factor when Biden faces the voters next year for reelection.
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