Biden Claims US Economy ‘Strong,’ Draws Pushback

President Joe Biden walks on the South Lawn, returning to the White House from Wilmington, Del., in Washington on Oct. 10, 2022. (Alex Wong/Getty Images)

President Joe Biden claimed the U.S. economy is “strong” and claimed other countries are worse off in dealing with soaring inflation.

During a visit to Oregon on Saturday, Biden was asked by reporters about inflation and the surging U.S. dollar.

“I’m not concerned about the strength of the dollar, I’m concerned about the rest of the world. Does that make sense?” Biden asked in response. “Our economy is strong as hell,“ he added. “It’s worldwide inflation that’s consequential.”

Biden’s remarks come as the consumer price index hit 8.2 percent year-over-year in September, running hotter than some analysts had anticipated, and nearing 40-year highs as well as recent concerns expressed by CEOs that a recession is looming. The producer price index, another inflation metric, reached 8.5 percent in September, rising 0.4 percent from August, according to Bureau of Labor Statistics figures.

The dollar, meanwhile, has soared 20 percent in the past year, lowering the price of U.S. imports while fueling inflation elsewhere.

A recent survey, Conference Board Measure of CEO Confidence, found that 98 percent of CEOs showed they were preparing for a recession in the next year to 18 months. Some have said that the inflation coupled with Federal Reserve policy decisions to raise interest rates has increased the likelihood of a downturn.

“CEO confidence sunk further to start Q4 and is at its lowest level since the Great Recession,” Dana Peterson, The Conference Board’s chief economist, said in a statement last week.

Gross domestic product fell in the first and second quarters of 2022. Recessions are technically defined by the National Bureau of Economic Research as back-to-back quarters of negative GDP growth.

“However, despite expectations of slower growth, tight labor market conditions and wage pressures persist, while hiring plans remained robust,” Peterson said.

Republicans, meanwhile, criticized Biden for his statements in Oregon about the state of the U.S. economy.

“Yesterday, Biden called the economy ’strong as hell.‘ According to a recent CNN poll, 78 percent of Americans say the economy is ’poor,’” wrote Ronna Romney McDaniel, chairwoman of the Republican Party.

Bank Reports

Half a dozen banks reported their quarterly results on Friday, ranging from behemoths JPMorgan Chase and Citigroup to super-regional banks like U.S. Bank and PNC Financial.

Wells Fargo CEO Charlie Scharf told investors on a conference call that the bank expects broader economic conditions to weaken, resulting in increases in delinquencies and credit losses.

Andy Cecere, the U.S. Bank CEO, said, “While the backdrop is favorable today, it would not be surprising to us to see an economic slowdown develop at some point driven by lower confidence levels, which may lead to reduced spending and business investment.”

And JPMorgan Chase CEO Jamie Dimon made headlines Monday when he said a “very, very serious” mix of concerns could lead to a recession in the next six to nine months.

The Associated Press contributed to this report.