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Biden Hails Jobs Data, Acknowledges Inflation Is Top ‘Challenge’

Published 05/11/2022, 02:08 am
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(Bloomberg) -- President Joe Biden hailed an increase in US employment but acknowledged that inflation remains his administration’s “top economic challenge” four days out from midterm elections that will determine control of Congress.

US job gains in October beat estimates in data reported Friday, with nonfarm payrolls rising by 261,000. September gains were also revised upward. Wages rose 4.7% from a year prior, though they are not keeping pace with inflation. 

Biden said the data shows “that our jobs recovery remains strong” The report underscores a resilient US job market that is a pillar of Biden’s economic message on the stump ahead of the Nov. 8 midterms. 

Still, polls show Democrats likely to lose at least one chamber of Congress and voters rank inflation and the economy as their most pressing concerns.

“Inflation is our top economic challenge, and I know that American families are feeling squeezed,” Biden said. He argued inflation would grow worse under Republican plans for the economy.

Read more: US Jobs Top Forecasts, Wages Pick Up in Resilient Labor Market

The job market is a challenge for Federal Reserve officials trying to cool inflation. After the central bank raised rates another 75 basis points on Wednesday, Fed Chair Jerome Powell warned the “labor market continues to be out of balance, with demand substantially exceeding the supply of available workers.”

Biden’s administration has steadfastly deferred to the Fed, while also signaling they want to “preserve” gains in the labor market. 

Biden again signaled disdain for those who think the job market needs to cool for inflation to level off.

“We’re going to do what it takes to bring inflation down. But as long as I’m president, I’m not going to accept an argument that the problem is that too many Americans are finding good jobs,” he said.

©2022 Bloomberg L.P.

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