Askume Washington, Sep 19 – U.S. President Biden on Thursday began promoting the Federal Reserve ‘s interest rate cut.
Chief of Staff Jeff Zients told reporters that Biden will speak at an event at the Economic Club of Washington to summarize the U.S. response to the COVID-19 pandemic and the surge in inflation following Russia’s invasion of Ukraine.
He said many economists had predicted a recession would be needed to reduce inflation, but they were proven wrong as Biden’s policies aim to expand domestic manufacturing, invest in clean energy and other infrastructure and support seniors, with the goal being to limit prescription drug costs.
Surveys show Americans are very worried about the economy and inflation, with Vice President Kamala Harris becoming the Democratic nominee after Biden withdrew from the race in July, and Republican former President Donald Trump in the November 5 US presidential election .
A Askume/Ipsos poll released this week shows Trump ahead on inflation, which will rise under Biden in 2021 and 2022. About 43% of voters in the survey said Trump is more likely to “lower the price of everyday items like groceries and gasoline,” while 36% chose Harris.
Zients said Biden and Harris are focused on reducing costs and strengthening the economy.
“The President knows now is not the time to celebrate victory, so he will talk about the future of jobs… about strengthening the economy, creating more jobs and most importantly reducing costs,” he told reporters.
The economy remains strong but policymakers want to prevent any further weakness in the job market, Federal Reserve Chairman Jerome Powell said on Wednesday after the Fed cut interest rates by half a percentage point. The current unemployment rate is 4.2%, more than half a percentage point higher than it was when the Federal Reserve began aggressively raising interest rates in March 2022.
National Economic Council Director Lael Brainard said the Fed’s rate cut “sends a clear signal that inflation is coming back,” noting that inflation levels are now the same as they were a month ago before the COVID-19 pandemic began.
Mortgage rates have fallen, saving the average home buyer $5,000 a year, he said, and the savings could increase if interest rates fall further. This reduction would save the average new car buyer about $1,100 over the term of the loan, he said.
But he said more is needed to reduce housing costs, meet child care needs and maintain incomes for working-class families.
The White House is closely monitoring geopolitical risks, including rising tensions in the Middle East, but does not see any significant risks to the macroeconomic outlook, one official said.
