WASHINGTON, (NEXSTAR) — Inflation remains high, but so is the Biden administration’s hopes that things will turn around.
Top White House economists say strong unemployment rates show the economy can bounce back.
Jared Bernstein, Chief Economist and Economic Policy Adviser to Vice President of the United States said despite surging inflation, Americans should remain confident the U.S. economy is strong.
“Families across the country are facing … unacceptably high levels of inflation. But they also have a strong labor market behind them,” Bernstein said.
He says the national unemployment rate is at pre-pandemic levels and in June, more than a dozen states reported their lowest unemployment rates ever.
“That trend is your friend right now if you’re a working American household,” Bernstein said.
But according to a recent survey by Bankrate.com, a consumer financial services company, economists are not as confident as the White House.
“There is a great confusion over what the state of the economy is because we have this pandemic-influenced dynamic,” said Mark Hamrick, a senior economic analyst at Bankrate.
He says while job numbers are “quite remarkable,” he fears one wrong move from the Federal Reserve, as it tries to control inflation, could send the economy over the edge.
“Broadly speaking, economists are concerned about the risk of a recession,” Hamrick said.
The White House said the strong state jobs report shows its economic policies are working. But the Republican National committee suggests the White House adopt Republican Economic Policies.
U.S. labor data shows 16 of the 20 states with the lowest unemployment rates have Republican governors.