WASHINGTON (AP) – President Joe Biden told the Associated Press on Thursday that the American people are “really, really down” after two stormy years with the coronavirus pandemic, economic instability and now rising gasoline prices hitting family budgets.
He said a recession was not imminent and was alarmed by Republican lawmakers’ claims that last year’s COVID-19 aid plan was entirely to blame for inflation, which peaked at 40 years, calling the argument “strange.”
As for American thinking as a whole, Biden said, “People are really, really dropped out.”
“They really fell,” he said. “America’s need for mental health has skyrocketed because people have seen everything upset. Everything they relied on is upset. But most of it is a consequence of what happened, what happened as a result of the COVID crisis. “
Speaking to the AP in a 30-minute interview in the Oval Office, Biden responded to economists’ warnings that the United States may be heading for a recession.
“First, it’s not inevitable,” he said. “Second, we are in a stronger position than any nation in the world to overcome this inflation.
As for the causes of inflation, Biden showed some defensive stance on the issue. “If it’s my fault, why is inflation higher in every other major industrial country in the world?” Are you wondering that? “I’m not a wise man,” he said.
The president said he saw a reason for optimism in the 3.6% unemployment rate and America’s relative strength in the world.
“Be confident, because I am confident that we are better positioned than any other country in the world to own the second quarter of the 21st century,” Biden said. “It’s not hyperbole, it’s a fact.”
Biden’s grim assessment of the national psyche comes as voters worsen his work and the country’s direction. Only 39 percent of adults in the United States approve of Biden’s nomination as president, according to a May study by the Associated Press’s NORC Center for Public Research, which fell from negative ratings a month earlier.
Overall, only about 2 in 10 adults say the United States is moving in the right direction or that the economy is good, both falling from about 3 to 10 in April. These declines were concentrated among Democrats, with only 33% of the presidential party saying the country was moving in the right direction, up from 49% in April.
The president outlined some of the difficult elections he faces, saying the United States must oppose Russian President Vladimir Putin’s invasion of Ukraine in February, although harsh sanctions imposed as a result of the war have led to rising prices. of gas, creating a political risk for Biden in an election year. He called on oil companies to think about the world’s short-term needs and increase production.
Asked why he ordered financial sanctions against Moscow, which upset food and energy markets around the world, Biden said he made his calculations as commander-in-chief rather than election-minded politician.
“I am the president of the United States,” he said. “This is the best in the country. No kidding. No kidding. So what’s going on? What will happen if the strongest force in NATO, the organizational structure we have formed, moves away from Russian aggression? “
Biden has revealed the possibility of chaos in Europe if an unhindered Russia continues to move deeper into the continent, China is encouraged to take over Taiwan, and North Korea becomes even more aggressive with its ambitions for nuclear weapons.
Biden reiterated that large oil companies have benefited from higher prices without increasing production as much as they should. He said companies need to think about the world in the short term, not just their investors.
“Don’t reward yourself,” he said.
Consumer prices have jumped 8.6% in the last year, the sharpest rise in more than 40 years. Republican lawmakers said Biden’s $ 1.9 trillion coronavirus relief package last year ushered in a spiral of price increases.
The president said there was “zero evidence” of the claim, noting that other countries had suffered higher prices as economies reopened and people were vaccinated. However, Biden confirmed Finance Minister Janet Yellen’s claim that spending has a limited inflationary effect.
“You can argue that this has had little effect on inflation,” he said. “I do not think so. And most economists don’t. But the idea that it caused inflation is strange. “
Still, high inflation has created a conundrum for Biden. He gave priority to the return of millions of jobs and saw the unemployment rate return close to pre-pandemic levels. The Federal Reserve on Wednesday raised its key interest rate in hopes of slowing the economy and reducing inflation to a 2% target.
The tightening of Fed policy has led to a slump in financial markets and prompted many economists to warn of a potential recession next year. The president encouraged Americans to remain patient.
“They don’t have to believe the warning,” he said. They just have to say, “Let’s say let’s see what’s right.”
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