By David Lawder
WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen is seeking to reclaim the narrative on the Biden administration’s economic record on Tuesday, arguing that Americans are better off than they were when President Joe Biden took office.
In excerpts of remarks to a banking conference released by the Treasury a week before the Nov. 5 presidential election, Yellen lauded robust U.S. economic growth, historically low unemployment, falling inflation and rising wages.
Stung by high inflation after the COVID-19 pandemic, many voters in the seven battleground states that will decide the winner of the election have ignored the traditional measures of the economy to focus on the higher prices they now pay for necessities, and are leaning towards Republican Donald Trump.
A Reuters/Ipsos poll this month showed that 61% of voters in the battleground states say the economy is on the wrong track with 68% saying the cost of living was on the wrong track.
Trump has consistently scored better on the economy in polls than Vice President Kamala Harris, his Democratic opponent, despite a robust U.S. economic performance that is driving global growth and outperforming rivals.
A common refrain in Trump’s rallies is that Americans are worse off than they were four years ago.
Yellen, who has touted billions of dollars in investments spurred by the Biden administration’s clean energy, infrastructure and semiconductor legislation, sought in her remarks to the American Bankers Association to remind voters how bad things were back in early 2021.
“When President Biden and Vice President Harris took office, thousands of Americans were dying each day from COVID-19. The unemployment rate was 50 percent higher than it is now,” Yellen said.
“Today, by contrast, the U.S. economy is strong. We’ve seen robust economic growth, bolstered by solid consumer spending and business investment, even while inflation has come down significantly from its peak.”
More positive data is expected this week, with third quarter GDP growth expected to top 3% on Wednesday, but payrolls growth is expected to be held back by the Boeing (NYSE:BA) strike involving 33,000 workers.
Yellen acknowledged that more work was needed to bring down the cost of living but said that wages have risen faster than prices.
“Which means that the typical American can afford more goods and services than before the pandemic. And Americans are starting new businesses at a record rate, reflecting optimism about the economy,” she said.