Under the leadership of President Biden and Senate Democrats, the American economy is coming back in a big way – the economy is growing far faster than expectations, inflation is going down, more families are seeing more money in their pockets, investment in American manufacturing is at a record high, and the American people are feeling better about the economy.
“A clear new pattern is emerging showing Americans are feeling more and more optimistic about the economy – and it’s not hard to see why,” said Leader Schumer. “After Democrats led passage of historic legislation like the Inflation Reduction Act, the CHIPS and Science Act, and the Infrastructure Law, American families are seeing more money in their pockets, more jobs, lower inflation, and higher wages. Unlike hard-right Republicans who stoke chaos and pursue partisan agendas, Senate Democrats and President Biden are taking America in the right direction.”
The investments Democrats that we made are starting to pay off for the American people – and we are just getting started. Thanks to legislation like the Inflation Reduction Act, the CHIPS and Science Act, the Infrastructure Investment And Jobs Act, and more, communities across the country are seeing new and historic investments that will create good-paying jobs and grow our economy. This morning, Leader Schumer announced another investment in New York made possible by the CHIPS and Science Act. And last week, Senator Amy Klobuchar (D-MN), Senator Tammy Baldwin, (D-WI), and Senator Tina Smith (D-MN) stood with President Biden to announce a critical $1 billion investment to replace the Blatnik Bridge connecting Wisconsin and Minnesota.
Washington Post: Falling Inflation, Rising Growth Give U.S. The World’s Best Recovery. “The European economy, hobbled by unfamiliar weakness in Germany, is barely growing. China is struggling to recapture its sizzle. And Japan continues to disappoint. But in the United States, it’s a different story. Here, despite lingering consumer angst over inflation, the surprisingly strong economy is outperforming all of its major trading partners. Since 2020, the United States has powered through a once-in-a-century pandemic, the highest inflation in 40 years and fallout from two foreign wars. Now, after posting faster annual growth last year than in 2022, the U.S. economy is quashing fears of a recession while offering lessons for future crisis-fighting.” [Washington Post, 1/28/24]
Yahoo Finance: Fed's Preferred Inflation Gauge Falls Below 3% For First Time Since March 2021. “The Fed's preferred inflation gauge has moved below 3% for the first time since March 2021, before the start of the central bank's rate-hiking campaign.” … “Month over month, core PCE rose 0.2% in December, up from 0.1% in November. Importantly, annualized core PCE over the last three and six months is now below the Fed's 2% target.” [Yahoo Finance, 1/26/24]
Politico: US Growth Shatters Expectations, Boosting Biden’s Economic Pitch. “The U.S. economy is growing faster than expected as inflation falls, and the Biden administration is seizing the moment in a bid to counter one of the fiercest lines of attack by former President Donald Trump. The Commerce Department reported Thursday that GDP expanded 3.1 percent in 2023, a year that began with heavy odds of a recession and closed out with fourth-quarter growth that blew away projections.” [Politico, 1/25/24]
Bloomberg: US Median Rents Fall for Eighth Month on Boom in New Apartments. “US median rents dropped for an eighth straight month in December as a surge in new units provided some relief on asking prices and suggested further declines in 2024. Metro areas in the West such as San Francisco and Los Angeles continued to experience year-on-year price declines, but the most significant drops were seen across big cities in the South as multifamily completion rates jumped 32% from January to October, according to a report by Realtor.com Thursday.” [Bloomberg, 1/25/24]
Associated Press: Americans’ economic outlook brightens as inflation slows and wages outpace prices. “After an extended period of gloom, Americans are starting to feel better about inflation and the economy — a trend that could sustain consumer spending, fuel economic growth and potentially affect President Joe Biden’s political fortunes.” … “What’s more, paychecks have outpaced inflation over the past year, thereby easing Americans’ adjustment to a higher cost of living. Weekly earnings for the typical worker — halfway between the highest and lowest earners — rose 2.2% last year after adjusting for inflation, the government reported last week. By that measure, inflation-adjusted pay is 2.5% higher than before the pandemic.” [AP, 1/24/24]
WSJ: Americans Are Suddenly a Lot More Upbeat About the Economy. “Americans are rapidly becoming much more upbeat about the economy. Consumer sentiment surged 29% since November, the biggest two-month increase since 1991, the University of Michigan said Friday, adding to gauges showing improving moods.” … “Consumer sentiment leapt 13% in the first half of January from December, the Michigan survey said, after a sharp rise the prior month. The pickup in sentiment was broad-based, spanning consumers of different age, income, education and geography.” [WSJ, 1/19/24]