President Biden is set to address the Economic Club of Washington, D.C., where he will discuss the progress of the American economy. However, his advisors have made it clear that he will not declare victory just yet. Instead, he will highlight the significance of falling inflation and the first key rate cut since 2020 for the American people.
White House Chief of Staff Jeff Zients emphasized that the President’s speech is meant to acknowledge the substantial progress that has been made, rather than claim complete success. Zients stated, “The President believes it’s important to mark this moment for the country by laying out how far we’ve come, while also outlining the work we still have to do.” This recognition of progress is crucial in maintaining a realistic perspective on the state of the economy.
During his speech, President Biden will present the three main pillars of his economic playbook. First, he will highlight the administration’s historic response to the COVID-19 crisis, which played a significant role in stabilizing the economy. Second, he will address the global inflation issue and the steps being taken to tackle it. Finally, he will discuss the efforts being made to build an economy that benefits all Americans.
However, both President Biden and Vice President Kamala Harris are fully aware that there is still work to be done. They recognize that the cost of childcare and housing are two major areas that need attention. Zients stated, “The president knows this is no time for a victory lap, which is why he will talk about the work ahead every single day.” This commitment to ongoing improvement demonstrates the administration’s dedication to strengthening the economy and addressing the needs of the American people.
National Economic Adviser Lael Brainard also weighed in on the recent rate cut announcement by the Federal Reserve. While acknowledging the positive signs in the data, Brainard emphasized the need to address the affordability challenges faced by middle-class families. She stressed the importance of investing in housing and making it more accessible and affordable for all Americans. This aligns with President Biden’s vision of creating millions of new affordable homes and removing obstacles to construction.
Despite the rate cut, there have been concerns about rising unemployment. However, a White House official dismissed these concerns, citing data from the Federal Reserve that indicates a solid labor market. In fact, the official stated that unemployment under the Biden administration has remained the lowest on average compared to any administration in the past 50 years. This data provides reassurance that the economy is on a healthy trajectory.
In response to a question about rising tensions in the Middle East and its potential impact on inflation, another White House official acknowledged that geopolitical risks are constantly monitored. However, they expressed confidence that the economy is in a good place and that the range of risks currently posed does not significantly threaten the outlook.
Overall, President Biden’s upcoming speech at the Economic Club of Washington, D.C. will celebrate the progress made in the American economy. While refraining from declaring victory, the President and his administration are committed to addressing ongoing challenges, particularly in childcare and housing. By focusing on their economic playbook and the steps being taken to build a stronger economy, the Biden administration aims to create more jobs, lower costs, and ensure a brighter future for all Americans.
