President Biden is scheduled to speak to the Economic Club of Washington, D.C. on Thursday in which he will make a “declaration of progress,” a day after the Federal Reserve cut interest rates.
White House chief of staff Jeff Zients predicted that Biden's speech would be “not a declaration of victory but a declaration of progress, great progress.”
Zients stressed that inflation and interest rates are falling and the unemployment rate remains below 4%, the lowest since the 1960s. The Federal Reserve cut interest rates by 50 basis points on Wednesday, its first rate cut after more than two years of battling inflation in the wake of the COVID-19 pandemic. The new federal funds rate is between 4.75% and 5%.
“The president has really led and written a new economic strategy for this country that invests in all of America, every region of America, Republicans and Democrats, and every American, that will have an impact for decades to come,” Zients said.
“I think this approach has proven them wrong,” he added, referring to economists who had predicted a recession.
Officials said that while many Americans still believe prices for gasoline, groceries, housing and child care are too high, the president is likely to emphasize in his speech Thursday that there is still work to be done to reduce costs.
White House officials insisted Biden's speech came at an “appropriate time to commemorate this milestone.”
The Consumer Price Index (CPI), an inflation measure that tracks a small number of goods and services, fell to 2.5% in August, close to the Fed's 2% target.
“The president has taken a number of very important steps throughout his administration that have contributed to this and it's important to mark this moment when the American people can get relief,” the official said.
The economy has often been cited as the most important issue for voters in this election, and on the campaign trail, Vice President Harris has struck a balance between touting the Biden administration's economic progress while acknowledging that more needs to be done.
“The president knows now is not the time to celebrate victory, which is why he will be talking about what's next,” Zients told reporters, adding that Biden will talk about “what's at stake as we move into this new phase of the economy.”
National economic adviser Lael Brainard added: “No one is declaring victory. The focus now should be on sustaining the gains made so far.”
The White House has stressed that Biden wants to maintain the Fed's independence, reiterating that “pledge” in a preview of a speech he will give after the Fed cuts interest rates.
“He has kept that pledge, which we view as essential to sound economic management. This is a stark contrast to his predecessor, who repeatedly criticized the Federal Reserve during his term,” the official said, referring to former President Trump.
