The White House defended President Joe Biden’s economic record on Monday as the nation experienced historic inflation, gas prices topped $5 a gallon and a stock market plunge.
White House press secretary Karine Jean-Pierre argued that President Biden had indeed made historic economic gains that would help the American people meet these economic “challenges.”
She blamed inflation — prices in May were 8.6% higher than a year earlier — the sharpest rise since 1981 — on the Covid pandemic and Russian President Vladimir Putin’s war in Ukraine.
“You know, at this price point, the upcoming high inflation that comes once every generation, the global pandemic, all these things play a role,” Jean-Pierre said.
But she argued that America would bounce back under Biden.
“The American people are well positioned to meet these challenges because of the historic economic successes we have achieved under this President over the past six months,” she noted.
The White House defended President Joe Biden’s economic record as the nation experienced historic inflation, gas prices topped $5 a gallon and the stock market plummeted
However, voters do not appear to be buying the White House argument. They consistently give Biden low marks for his handling of the economy.
The government has consistently blamed Russia for high fuel, food and housing prices, calling it “Putin’s price hikes.”
“We’re not the only country struggling with what we’re seeing at the moment in terms of inflation,” Jean-Pierre said.
The White House has struggled to show that it has the problem well under control.
There were reports that the Federal Reserve Board could surprise buyers at its meeting this week with a larger-than-expected 0.75 percentage point hike to combat these record inflation levels.
The Fed raised interest rates by half a percentage point last month, the first such hike since 2000, to a range of 0.75% to 1%. The Fed last raised interest rates by 0.75 percentage points at a meeting in 1994 to fight inflation.
Meanwhile, the S&P 500 ended Monday in a bear market, down 3.9%. The S&P closed down more than 20% from its January high — for the first time since 2020. The Dow Jones Industrial Average fell 2.8%, or about 875 points, while the tech-heavy Nasdaq Composite was down 4.7%.
Jean-Pierre said the White House is watching the stock market closely.
“We’re watching closely. We know families are concerned about stock market inflation. That’s something the President is really aware of,” she said.
Biden’s average approval rating on gas prices is about 30%. Inflation is also around 30%.
“We know that higher prices really affect people’s lives,” said Jean-Pierre. “We understand that and are incredibly focused on doing everything we can to make sure the economy works.”
“We are emerging from the strongest job market in American history. And that’s important, and a lot of that is thanks to America’s bailout plan, which only the Democrats voted for, not the Republicans. And it led to this economic growth, this historic economic boom that we are witnessing now.”
She denied that the boom also led to historic inflation records.
Republicans in Congress are slamming the Democrat on the economy ahead of this fall’s midterm elections.
Friday’s Labor Department report showed that the consumer price index rose 1 percent month-on-month in May, for a 12-month increase of 8.6 percent.
The annual surge, fueled by soaring food and energy prices, was hotter than economists had expected, surpassing the recent peak of 8.5 percent hit in March and reaching levels not seen since December 1981 .
Meanwhile, for the first time Saturday, a gallon of regular gasoline cost an average of $5 nationwide, according to AAA.
It was the 15th straight day that the AAA hit a record price and the 32nd time in the last 33 days.
With five months to go before the election, Democrats are worried about the political environment.
Traditionally, the president’s party loses seats in Congress in the midterm elections.
Polls show Republicans being favored to retake the House of Representatives, which will hamper Biden’s agenda.
“The American people are well-positioned to meet these challenges because of the historic economic accomplishments that we have made under this President over the past six months,” argued White House press secretary Karine Jean-Pierre
For the first time Saturday, a gallon of regular gasoline cost an average of $5 nationwide, according to the AAA
Gas prices are up more than 55% in 12 months.
According to a CNN analysis last week, no other mid-term cycle showed a rate of increase nearly as high as five months before the election.
The closest 37% was in 2006 – a year in which the party that held the White House (Republicans) lost 30 seats in the House and control of the chamber.