Most U.S. adults have downbeat feelings about Biden’s economic leadership, as high inflation has overshadowed a strong jobs market. It’s long been economic orthodoxy that efforts to beat back inflation by the Federal Reserve would result in unemployment rising and the country sinking into recession.
For a president seeking a second term, Biden struck a confident tone Friday when meeting with aides even as he pushed GOP lawmakers for a clean increase on the debt cap. Heidi Shierholz, president of the Economic Policy Institute, a liberal think tank, said there are currently no signs of a recession and if one erupts it will be due to Fed overreach.
Just as Biden trumpets the solid job market, Fed officials could interpret the hiring as evidence that they need to raise rates higher and that could cause more pain for the economy and the Democratic administration.