President Biden, whose re-election prospects could hinge on whether inflation moderates without the economy heading into a recession, quickly took credit for the latest data showing a slowdown in price increases in June.
“Good jobs, lower costs: This is the Bidennomics approach,” Mr. Biden said in a statement on Wednesday.
The White House has described his economic agenda as “bedonomics” in recent weeks, and the president has been stressing that his policies have kept the economy on a steady track and maintained a healthy job market.
While controlling inflation is the Fed’s job, Biden’s political fate depends on whether the central bank can cool the economy enough to achieve what’s known as a “soft landing” by fighting price increases under control without causing a recession.
“Today’s report brings new and encouraging evidence that inflation is declining while our economy remains strong,” Biden said in the statement. “Our progress in creating jobs while lowering costs for families is no accident, and I will continue to fight to lower costs for families every day.”
While the latest data has shown Mr. Biden may be able to get that sweet slowdown, the economy still faces headwinds. The Fed, which has raised interest rates above 5 percent to try to cool the economy, is expected to raise them again later this month.
Treasury Secretary Janet L. Yellen said in an interview with CBS this week that a recession is “not completely off the table.” However, she expressed optimism that while the job market is likely to weaken, the United States will not experience such a downturn.
“I hope, and I believe, that there is a path to lower inflation in the context of a healthy labor market, and the data that I’ve seen suggests we are on that path,” Ms. Yellen said.
Republicans argued on Wednesday that inflation remained too high and real wages were lower than when Biden took office.
“It will take a long time for American families to recover from Bednomics,” said Tommy Piggott, director of rapid response at the Republican National Committee. “The main way to make sure they do that is to make Biden a one-term president.”