Biden’s Economic Optimism Threatened by Sticky Inflation, Credit Shocks

Large government spending has postponed a recession, while worsening the inflation burden and the outlook, an economist warns

President Joe Biden arrives to speak during a visit to the Cummins Power Generation facility in Fridley, Minn., on April 3, 2023. Stephen Maturen/Getty Images

The U.S. economy has made a remarkable comeback from COVID-19, growing by 2.1 percent in 2022 and returning to its pre-pandemic growth track.

Since President Joe Biden took office, the economy has recovered more than 12.5 million jobs and the unemployment rate has dropped to a 50-year low. The number of applications for new small businesses also has reached an all-time high, which Biden has frequently praised.