President Biden, whose re-election prospects may hinge on whether inflation comes down without the economy tipping into recession, quickly took credit for the latest data showing a slowdown in price growth in June.
“Good jobs and low costs: That’s Bidennomics in action,” Mr. Biden said in a statement on Wednesday.
The White House has dubbed its economic agenda “Bidenomics” in recent weeks, and the president has been claiming that his policies have kept the economy on a stable path and maintained a healthy labor market.
While it is the Federal Reserve’s job to control inflation, it is Mr. Biden whose political fate hinges on whether the central bank can cool the economy enough to make what is known as a “soft landing” without causing a recession. By controlling the rise in prices generated. ,
“Today’s report brought new and encouraging evidence that inflation is falling 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 achieve that mild recession, the economy is still facing 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 the recession “hasn’t fully unfolded.” Nevertheless, he expressed hope that although the labor market is likely to soften, the United States will not experience such a recession.
Ms. Yellen said, “My hope and belief is that there is a path to reduce inflation in the context of a healthy labor market and the data that I have seen suggests that we are on that path.”
Republicans argued on Wednesday that inflation remained very high and real wages were lower than when Mr. Biden took office.
“It will take a long time for American families to recover from ‘Bidenomics,'” said Tommy Pigott, rapid response director for the Republican National Committee. “The main way to ensure that is to make Biden a one-term president.”