President Joe Biden praised a jobs report released on Friday that indicated 517,000 new jobs were added in January and the unemployment rate dropped to 3.4%, the lowest level in 54 years, as proof that his economic strategy is bolstering the American economy, Reuters reports.
While real earnings are rising and inflation is continuing to decline, Biden said speaking at the White House that more has to be done to bring down prices for Americans.
When asked if he was to blame for the high rate of inflation, Biden responded that it was already high when he assumed office two years ago.
As a result of the COVID-19 epidemic, the U.S. economy was struggling when Biden assumed office in January 2021, although inflation rates did not rise until after he had taken office.
When Biden started his tenure, the yearly rate of inflation was about 1.4%; by 2022, it had increased by 6.5%. According to economists, shortages and disruptions that occurred before his administration contributed to some of the price increases.
Republicans attributed last year’s increase in inflation to Biden’s massive COVID-19 spending plan, while U.S. officials stated the invasion of Ukraine by Russia and supply bottlenecks were to blame for higher costs.
The positive employment report released on Friday probably means that the U.S. Federal Reserve will keep raising interest rates to temper an unexpectedly robust labor market that is thought to be a factor in rising inflation.
While highlighting the fact that the unemployment rates for Black and Hispanic people were approaching historic lows and that real wages were increasing at a modest clip, Biden chose not to discuss the implications for interest rates.
“The economy (is) growing at a softer clip,” Biden said. “Today’s data makes crystal clear what I’ve always known in my gut: These critics and cynics are wrong. … Our plan is working because of the grit and resolve of the American worker.”
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