U.S. economy is in a ‘period of transition,’ White House economic adviser says

Last updated on July 4, 2022

National Economic Council Director Brian Deese said Sunday that the high inflation rates across the country are a result of the economy’s “period of transition” in recovering from the pandemic.

“We’re moving from the strongest economic recovery in modern history to what can be a period of more stable and resilient growth,” he said on “Fox News Sunday.”

And although talk of a recession gained traction in recent weeks, Deese said that Americans hit with higher costs — at the pump or at the grocery store or elsewhere — should “take confidence that [the U.S. is] better positioned than any other country to navigate through this and keep our recovery going.”

Ongoing inflation — the highest America has seen since the 1980s — has not only hit many American consumers hard but also put a damper on the political fortunes of President Joe Biden, whom some have portrayed as tone-deaf on economic issues. A CBS News poll released Sunday, in which 69 percent of those surveyed thought the economy was either “fairly bad” or “very bad,” put Biden’s disapproval rate at 56 percent.

Deese also outlined some of the steps in the White House’s playbook to tackle inflation.

“We need to give the Federal Reserve the independence to do what it does. It has the tools to combat inflation,” he said.

“Second, we need to reduce costs and make things more affordable for families during this period. Steps that we can take to reduce the cost of the internet bills that families pay or the prescription drug prices that they pay are really important right now.”

Another part of the plan is working to bring down the federal deficit, he said.

“If we can do all of those things, then we can build on the historic strengths we have here in the U.S. economy and we can navigate through to more stable growth that will generate better outcomes for families,” he said.