The White House on Tuesday said the underpinnings of the U.S. economy remain strong despite a massive selloff on Monday that raised fears of a recession.
Wall Street recovered ground on Tuesday but the turmoil, which spread to global markets, poked holes in the Biden administration’s claim the economy was on the upswing in an election year.
“Our broader economy remains resilient,” White House press secretary Jean-Pierre said.
She said inflation is easing, if slowly, and the unemployment rate is in a good place despite rising to 4.3% in July.
Ms. Jean-Pierre also said consumers are still spending money.
Still, investors are counting on the Federal Reserve to act to head off a possible recession. They are counting on interest rate cuts beyond the half percentage point cut slated for mid-September.
“We’re going to continue to keep an eye on what is happening,” Ms. Jean-Pierre said.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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