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convince Americans the economy is healthy -Breaking


© Reuters. U.S. Vice President Joe Biden is seen with Jacinda Ardern, New Zealand’s Prime Minster, in Oval Office of the White House in Washington. May 31, 2022. REUTERS/Leah Millis

Howard Schneider, Trevor Hunnicutt

WASHINGTON, (Reuters) – President Joe Biden plans a media blitz in order to boost his sagging opinions poll numbers prior to November’s congressional elections. He will promote his management of America’s recovery from the coronavirus panademic as well as efforts to reduce spiraling inflation.

According to a White House official, Tuesday’s biden-Federal Reserve Chair Jerome Powell meeting was the first in a series of events that spanned several weeks.

Through June, the official said, the White House plans to emphasize the historic levels of job creation and low unemployment rate seen through Biden’s first 17 months in office, his pledge to respect the Fed’s independence and coming efforts to “put more money in the pockets of working families.”

Biden will address the nation on Friday about the job numbers. Cabinet members Janet Yellen and Gina Raimondo, Commerce Secretary, as well as economic advisors Jared Bernstein, Heather Boushey, plan dozens of TV spots and in-person events.

The prospects for Biden’s Democratic Party to maintain control of Congress in the Nov. 8 election may hinge on how successfully he can craft a positive economic narrative around what has become an increasingly sour mood.

Working families seem to be doing very well.

While unemployment is higher than in the boom years of 1950s/60s, the wages for many low-skilled professions are on the rise, and banks are still rich from the coronavirus assistance programs. According to recent Fed surveys, households are in an average strong financial situation.

However, confidence is declining and the economic situation topped respondents’ concerns in a recent Reuters/Ipsos survey. His approval rating is now at 36%. This marks the lowest point in his presidency.

The Fed has unleashed what could be one of the most rapid efforts ever to tighten its monetary policy. Inflation is at a 40 year high and has continued to rise longer than expected by policymakers when it rose in 2013.

In a civil war with former President Donald Trump, the opposition Republican Party has gathered around biden to hammer him on inflation.

“The Democrats need to resist the temptation of explaining how inflation got created and just go totally into like, what we’re doing about it,” Rodd McLeod (a Democratic political consultant) said. Arizona is one that has the potential to swing to either major party.

Biden’s Wall Street Journal Tuesday commentary about inflation-fighting plans highlighted the enormity of his challenge.

The majority of over 1,000 comments made in one of our few national newspapers by midday had rejected the prescription drug pricing plans and tax credit plan that Biden presented. They instead advocated lower taxes, more oil drilling, and dismissed Biden’s ideas as fiction.

Inflation control will not be possible without the ability to make sound central bank decisions. It also requires a lot of luck. Events such as the Ukraine War and the Coronavirus Pandemic have had a devastating effect on global prices. We don’t know if there will be another spike in China manufacturing.

Biden is best positioned to make a case at home that tighter Fed monetary policy slows the economy so that spending falls and job opportunities are reduced without cutting into employment.

If inflation is more stubborn, the Fed could decide to raise interest rates until the economy enters recession. This would cause a substantial increase in unemployment. September will be an important month for the Fed, who is expected to review its situation and make a decision about whether or not to increase their aggressiveness.