Amid the fears of a recession and growing economic challenges, the White House is adamant that Americans are well-equipped to face the economic storm with President Joe Biden’s efforts on Monday.
Press secretary Karine Jean-Pierre was asked about the White House’s reaction to the declining stock market, which saw the gains produced since Biden was elected last year getting wiped clean. She responded that the White House was following the situation closely.
Jean-Pierre pointed out that the United States was not alone in the situation as other countries were also dealing with inflation.
“We know families are concerned about inflation and the stock market,” said the press secretary. “That is something that the President is really aware of.”
Jean-Pierre pointed fingers at the Russian invasion of Ukraine and the pandemic as factors to the worldwide inflation. She also said that while the stock market declined, the White House believes that Americans are in a better position to deal with economic problems than before Biden was elected.
“The way that we see this is the American people are well-positioned to face these challenges because of the economic historic gains that we have made under this President in the last 16 months,” said the press secretary.
Despite the comments, unemployment rates still stand at 3.6%, while Americans’ wallets suffer from the increasing prices of goods and decreasing stock values.
The average price for a gallon of regular price throughout the country hit $5 for the first time, consumer confidence hit its lowest, and the U.S. inflation grew higher than anticipated. Stocks also plunged into a bear market, making investors grow nervous at the prospect of harsher rates from the Federal Reserve.
“We know that high prices are having a real effect on people’s lives,” said Jean-Pierre. “We get that, and we are incredibly focused on doing everything that we can to make sure that the economy is working for the American people. But we are coming out of the strongest jobs market in American history, and that matters. And a lot of that is thanks to the American Rescue Plan.”
Treasury Secretary Janet Yellen said last week that Biden’s $1.9 trillion plan contributed modestly to the inflation. On Monday, she said that the gas prices would have been worse had not Biden taken action, authorizing a record release earlier this year.
Earlier this month, Biden acknowledged he could do little to lower gas or food prices immediately.
“There’s a lot going on right now, but the idea we’re going to be able to click a switch, bring down the cost of gasoline, is not likely in the near term. Nor is it with regard to good,” said the President at the White House.