President Biden, whose re-election prospects could hinge on whether inflation moderates without the economy tipping into recession, was quick to take credit for the latest data showing a June slowdown in price increases.
“Good jobs and lower costs: That’s Bidenomics in action,” Mr. Biden said in a statement on Wednesday.
The White House has branded his economic agenda as “Bidenomics” in recent weeks and the president has claimed that his policies have kept the economy on a stable path and maintained a healthy labor market.
While controlling inflation is the job of the Federal Reserve, it is Mr Biden whose political fortunes hinge on whether the central bank can cool the economy enough to achieve what is known as a “soft landing” by tackling price increases under control without causing a recession. .
“Today’s report brings new and encouraging evidence that inflation is easing while our economy remains strong,” Mr. Biden said in the statement. “Our progress in creating jobs while lowering costs for families is no accident, and I will continue to fight for lower costs for families every day.”
While the latest data showed that Mr. Biden may be able to get that mild slowdown, the economy still faces headwinds. The Fed, which has raised interest rates above 5 percent to try to cool the economy, is expected to raise them again later this month.
Treasury Secretary Janet L. Yellen said in an interview with CBS this week that a recession is “not completely off the table.” However, she expressed optimism that while the labor market would likely soften, the United States would not experience such a downturn.
“It is my hope that and belief that there is a path to lower inflation in the context of a healthy labor market and the data that I have seen suggests that we are on that path,” Ms. Yellen said.
Republicans argued on Wednesday that inflation remained too high and that real wages were lower than when Mr. Biden took office.
“American families will take a long time to recover from ‘Bidenomics,'” said Tommy Pigott, director of rapid response for the Republican National Committee. “The main way to make sure they do is to make Biden a one-term president.”