Lael Brainard, the head of the White House’s National Economic Council and a top economic adviser to President Joe Biden, conveyed optimistic sentiments on the state of the U.S. economy during a recent press briefing in Washington.
She pointed out that recent data indicate a favorable economic trajectory, stating, “the width of the runway for a soft landing has gotten much bigger.”
Additionally, Brainard highlighted the role of immigration in revitalizing the U.S. labor force.
One of the key takeaways from Brainard’s remarks was the positive news regarding inflation.
She noted that there have been encouraging signs that inflation has been on a downward trend and could continue to decrease while the economy remains robust as we head into the next year.
This comes as a relief for President Biden, who is seeking re-election in the near future amidst concerns from voters regarding the economy.
Recent polling data from Reuters/Ipsos revealed that 45% of U.S. adults believed that former President Donald Trump had a superior economic approach, while 33% favored President Biden, with the rest undecided.
Brainard acknowledged the administration’s commitment to exploring ways to reduce costs and ensure a soft landing for the economy, which is a goal shared by economists to control inflation without causing a recession.
Federal Reserve chief Jerome Powell also weighed in, suggesting that the historic move to tighten monetary policy is likely coming to an end due to the faster-than-expected decline in inflation.
This has led to a significant rally in the stock market, with the S&P 500 index posting a 23% gain year-to-date.
However, Brainard cautioned that it may take some time for people to feel financially secure, despite the positive outlook in financial markets.
Inflation, which had reached a peak of 9.1% in June 2022, has moderated to 3.1% over the past year but remains uncomfortably high for many Americans.
Brainard attributed the easing of inflation to President Biden’s efforts in addressing supply chain issues and the addition of approximately 3 million more workers to the labor force over the past year.
She also emphasized the role of immigration, stating that foreign-born workers have played a crucial part in the labor force’s resurgence.
In the realm of policy discussions, there has been a complex negotiation between Republicans and the Biden administration regarding Ukraine funding and measures to reduce illegal border crossings.
The administration is reportedly considering new restrictions on asylum seekers and an expanded deportation process as part of the negotiations.
Overall, Brainard’s comments provide a glimpse into the Biden administration’s economic outlook, with a focus on managing inflation and leveraging immigration to bolster the labor force’s recovery.