Reuters reports on remarks from Heather Boushey, a member of President Joe Biden’s Council of Economic Advisers, on Tuesday at an event hosted by the Washington Post.
Asked about Biden’s recent comment that a recession was not inevitable, Boushey said she agreed, adding strong family balance sheets, the low unemployment rate and the economy’s ability to weather the COVID-19 pandemic and other “storms,” without elaborating on specific data.
“That gives us some confidence that should oil prices continue to be high or maybe go up, which would be horrible, … there’s enough of wiggle room that businesses and families will be able to make it through because they have resources to fall back on,”
Sheesh. This does not sound too convincing and I suspect she is just going through the motions. Other members of Biden’s administration are talking the economy up also. For example:
Powell will be delivering remarks to the US Congress next Wednesday: Fed Chair Powell’s semi-annual testimony on monetary policy before the US Senate Banking Committee
Coming up on 22 June 2022:
Federal Reserve Chair Jerome Powell heads to the US Congress for his semi-annual congressional testimony
to testify before the Senate Banking Committee on Wednesday
(then the House Financial Services Committee on Thursday)
Both the Fed and Congress want to lower inflation (as does Biden). Nevertheless, he’ll get a grilling from the Senators. Powell won’t be backing down on his commitment to hiking rates in the months ahead.
I’m awaiting the publication of Powell’s prepared testimony. Its in the Q&A to follow that spontaneous comments will occur.
That carries over the positive tone from yesterday, though it hardly chips into the fall from last week. For now, equities are keeping the calm but I reckon we might get more volatility once Wall Street enters the fray later today.
Elsewhere, US futures are keeping more positive with S&P 500 futures up 1.5%*, Nasdaq futures up 1.5%*, and Dow futures up 1.3%*.