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Biden gets surprise boost from economy

For most of Biden’s term, economists have been worried about a recession.

 

As the Federal Reserve launched a series of interest rate hikes to fight inflation, the fear was that a downturn would be hard to avoid.

 

The Fed itself in March predicted a “mild recession,” before reversing its position Wednesday after raising interest rates.

 

“The staff now has a noticeable slowdown in growth starting later this year in the forecast, but given the resilience of the economy recently, they are no longer forecasting a recession,” Federal Reserve Chairman Jerome Powell said Wednesday.

 

However, some economists think a recession is still possible, and Republicans also have not dropped their economic criticisms of the White House.

 

“It’s entertaining to watch the administration sit here and say, ‘Oh everything’s great now,” Rep. Mike Lawler (R-N.Y.) said Thursday.

 

“Yes, inflation has come down, but the economy in no way is growing at the levels that it needs to be,” added Lawler, who represents a swing district and is one of the more vulnerable House Republicans in next year’s election.

 

Some key factors also leave some economists wary of another threat to the economy later this year.

 

Millions will see an end to the three-year pause in student loan payments later this year, which could crunch consumer spending.

 

The Hill’s Alex Gangitano and Tobias Burns have the rest here.

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