One of Biden’s top economic advisors pointed to negative and positive trends the US economy is experiencing, saying the mix of both 40-year high inflation and strong consumer spending paints a confusing pictures for officials.
Speaking on “Fox News Sunday”, economic advisor Jared Bernstein said, “Right now you got inflation headwinds — big time in this economy, not taking anything away from that — but you also have some very strong tailwinds that are boosting consumers.”
The American public, however, does not seem to agree. According to polling from June, over half believe the US is already in a recession.
President Joe Biden’s approval ratings have plummeted to all-time lows as a result of high gas prices and ongoing inflation the administration repeatedly brushed off as “transitory”.
The stock market has plunged into bear conditions and the country’s gross domestic product (GDP) already recorded one decrease this year, with the second quarter also expected to be negative.
“No denial at all about the unacceptability of these elevated prices,” Bernstein added after downplaying inflation, “but underlying that is an economy with the strongest labor market in a generation.”