Key takeaways:
- When inquired about the Industrial Average losing all of its gains, White House press secretary Karine Jean-Pierre said that President Biden is “very aware” of the recent stock market crash.
- On Monday, the Dow Jones Industrial Average reached its lowest level since January 2021.
- Inflation has been blamed on pandemic mishaps, Russian President Vladimir Putin’s invasion of Ukraine, as well as purported price hikes by meat producers, oil companies, and shipping companies, according to Biden.
The White House was on the move on Monday, as the stock market tumbled and members of the media questioned whether Joe Biden was still appreciative of his economic recovery.
The Dow Jones Industrial Average finished the day down nearly 3%, while the Nasdaq dropped even more. Experts say investors and businesses are worried about what Fed Chair Jerome Powell will do next to calm the soaring inflation that has afflicted the US economy for months.
Prior to the recent stock market decline, Biden frequently praised the market’s performance, though he always made it clear that he didn’t consider it the only major economic indicator.
“The stock market — the last guy’s benchmark of everything,” Biden said Jan. 7, “is about 20% greater than it was when my predecessor was there.” On my watch, it has broken record after record while also making things more equitable for working-class people. Simultaneously, we’ve added jobs, reduced unemployment, and raise wages.”
Peter Doocy, a Fox News reporter, brought into question the White House press secretary Karine Jean-Pierre about the economic crisis during the briefing.
“President Biden once boasted about the stock market breaking record after record after record on my watch,'” Mr. Doocy said, quoting the president.
“All the gains from President Biden’s time in office have been wiped out,” he added before Ms. Jean-Pierre could answer back fully.
Jean-Pierre assured that the government is committed to doing everything possible to ensure that the economy works for all Americans. However, they are emerging from the strongest job market in American history, which is significant, and much of this is due to the American Rescue Plan, for which only Democrats voted. Republicans, however, did not. And it was this economic boom, this historic economic boom, that resulted from it.
“As you know, we’re keeping a close eye on things. Families are clearly worried about inflation and the stock market. “That’s something the president is well aware of,” Jean-Pierre explained.
“And so, look, we’re dealing with global challenges.” This is something we’ve discussed. We’re not the only country dealing with the current state of inflation. Putin’s price hike, inflation resulting from a once-in-a-generation global pandemic, all of these factors play a role.”
“The way we see it, the American people are well-positioned to face these challenges because of the historic economic gains that we have made under this president,” Jean-Pierre continued.
Inflation and rising consumer prices are now among Americans’ biggest worries as the midterm elections approach in 2022, a possibly lethal marker for Democrats hoping to keep their House and Senate majorities. Gas prices, in particular, have remained at all-time highs across the country, while other costs such as housing and food have also risen dramatically.
Indeed, Biden took office in the midst of a mass vaccination campaign that enabled the lifting of COVID-19 pandemic business restrictions, which aided stock market gains last year. The mass vaccination campaign began in December 2020, while President Donald Trump was still in office, and continued under Vice President Joe Biden.
Republicans, federal bankers, and Amazon/Washington Post owner Jeff Bezos allege that inordinate government stimulus, including Biden’s $1.9 trillion American Rescue Plan Act, contributed to high inflation, which reached a new four-decade high of 8.6% in May, the lowest rate since 1981.
For months, the White House has placed much of the blame on Russia and the invasion of Ukraine, a scenario that some economists think is unlikely given extra issues such as worldwide supply problems and surging demand sparked by shifts in the financial and working lives of people in many Western countries as a result of the pandemic.
