Biden says the economy is improving, but Americans may not agree
President Biden opened his speech by touting the country's economic strength. He got a big boost from Friday's jobs report, which showed that about half a million jobs were added to the economy in January, which was much higher than analysts predicted. There are other indicators that look good for Biden, too -- in December, inflation slowedfor the sixth straight month, ebbing from historic highs that had become a source of major criticism of him and his administration.
But the strong job growth under Biden has to be taken in context. Tens of millions of Americans lost their jobs in the first few months of the COVID-19 pandemic, and the labor market was still recovering when Biden took office in January 2021. And although the unemployment rate is at its lowest point in decades, as Biden also noted, Americans don't necessarily think the economy is improving. According to polling by Civiqs, confidence in the economy has been low since the COVID-19 pandemic hit in 2020, and although perspectives on the economy outlook are a little rosier than they were over the summer, the share of Americans who say that the economic outlook is fairly or very bad is still high.
And Biden's own Federal Reserve chairman, Jerome Powell, said earlier Tuesday that while inflation is starting to ease, if the labor market remains strong, more interest rate hikes could be coming. He warned that there could be more economic pain. "There's been an expectation that it'll go away quickly and painlessly," Powell said. "I don't think that's at all guaranteed."
-FiveThirtyEight's Amelia Thomson-DeVeaux