New data released today reveals significant progress towards the Federal Reserve's inflation goals. The preferred inflation gauge of the Central Bank, the P.C.A. Index, remained steady at 2.6% in December, bringing it within 0.6 percentage points of the Fed's target of 2%. This report emerges alongside a recent Pew Research poll that indicates a slightly more positive perception of the economy among Americans. However, despite these positive indicators, President Biden's approval rating continues to remain low, as he struggles to claim credit for the improving economy.
Consumer spending has seen a notable increase, and individuals seem satisfied with the current gas prices, which have experienced a drop recently. Yet, President Biden has yet to receive recognition for these improvements. This presents a challenge for the White House and the Biden campaign—connecting the dots between the positive economic shift and the actions taken by the president. The administration asserts that the improvements are a direct result of President Biden's economic policies.
President Biden plans to address this challenge by hitting the road and conveying his message directly to the public. One recent example is his visit to Wisconsin, where he emphasized the connection between his legislative accomplishments in infrastructure and the financial support allocated to crucial projects like the Wisconsin-Minnesota bridge. This bridge, he argued, is vital for the U.S. economy. Through these visits to different locations, including the key battleground state of Wisconsin, the president aims to establish a link in voters' minds between their own experiences and the impact of his actions in Washington over the past three years.
Despite the efforts invested, recent polling data indicates that these messages have yet to resonate with the public. Moving forward, the White House plans to communicate more frequently about the positive indicators within the economy that are anticipated to improve voters' outlook in the months leading up to the November elections.
The P.C.A. report serves as an important milestone for the economy, providing more breathing room for working families, according to President Biden. However, convincing the American people that these improvements are a direct result of his policies remains a hurdle that the president and his team will tackle in the coming months. As the White House continues to highlight positive economic indicators, they hope to foster a sense of optimism among voters as the election approaches.
