The U.S. economy is on a robust path to recovery, according to top White House economist Lael Brainard. Speaking at an Economic Club of New York event, Brainard expressed optimism, stating that there is “encouraging evidence that the economy is on the path to moderate inflation accompanied by a resilient jobs market.”
This positive outlook aligns with recent data released in June, which showed a modest 0.2% increase in U.S. consumer prices and the lowest inflation rate since 2021. President Joe Biden also highlighted this achievement in a statement, crediting some of his policies for the progress made. He reaffirmed his commitment to fighting for lower costs for families and emphasized his focus on growing the economy from the middle out and bottom up.
Looking ahead, Brainard explained that the administration plans to continue working on policies that will support growth benefiting the middle class through smart public investments, worker education and empowerment, and reducing the cost of living.
Despite these positive developments, the Federal Reserve may still consider raising interest rates again in the near future. Inflation, although moderating, may not be slowing quickly enough to dissuade the central bank from taking this step. After a pause in June, the Fed is prepared to increase a key short-term rate later this month.
Following the release of the data, U.S. stocks experienced a rally, while bond yields fell. These market reactions reflect confidence in the economy’s performance.
Read: U.S. inflation slows again, CPI shows, as Fed weighs another rate hike
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