WASHINGTON (Reuters) – U.S. President Joe Biden will tout progress in bringing down inflation and boosting employment on Thursday after the Federal Reserve’s interest rate cut, while vowing to keep working to lower costs for American families, key aides said.
Biden will use an event with the Economic Club of Washington to summarize how well the U.S. responded to the COVID-19 pandemic and a surge in inflation after Russia’s invasion of Ukraine, his chief of staff, Jeff Zients, told reporters.
Many economists had predicted a recession would be needed to lower inflation, but were proven wrong as Biden’s policies aimed at expanding domestic manufacturing, investing in clean energy and other infrastructure, and capping drug costs for seniors helped create 16 million jobs and raised wages, he said.
But Biden and Vice President Kamala Harris, the Democratic candidate in the Nov. 5 presidential election, were focused on continuing to lower costs and strengthen the economy.
“The president knows this is no time for a victory lap, which is why he will talk about the work ahead … to make the economy stronger, create more jobs and importantly, lower costs,” he told reporters.
National Economic Council Director Lael Brainard said the Fed’s decision on Wednesday to cut rates for the first time in four years sent a “clear signal that inflation has come back down,” noting that inflation was now at the same level seen in the month before the pandemic began.
She said mortgage rate reductions already seen would save the average home buyer $5,000 a year, with savings to increase as mortgage rates declined further. The cut in interest rates would also save the average new car buyer nearly $1,100 over the life of their loan.
But she said further work was needed to drive down housing costs, support childcare needs and sustain the gains achieved for working class families.
The White House is monitoring geopolitical risks, including escalating tensions in the Middle East, but sees no significant risks to the broader economic outlook, an official said.
(Reporting by Andrea Shalal; Editing by Lincoln Feast.)
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