The U.S. economy is showing “continued resilience” despite a predictable slowdown, a top White House economic advisor said Wednesday.
National Economic Council Director Brian Deese said low rates of bank card delinquency and mortgage concerns point to resiliency in household balance sheets, while the labor market and the savings rate also indicate steadier growth. What’s more, he pointed to slowing inflation as a positive sign for healthier economic growth.
“We want to see a transition to a more stable growth trajectory, but I feel in case you have a look at the important thing elements that you just need as a part of that, some easing on the inflation side … we’re beginning to see some evidence in that direction,” Deese said Wednesday on CNBC’s “Squawk Box.”
The November labor market report released Friday showed job growth was higher than expected, as nonfarm payrolls increased by 263,000. The unemployment rate was 3.7%.
White House economic adviser Brian Deese speaks during a press briefing on the White House in Washington, March 31, 2022.
Kevin Lamarque | Reuters
The Federal Reserve has steadily raised rates of interest in an effort to bring down the best inflation in 40 years, contributing to concerns a couple of coming recession. The improving labor market, combined with a 0.6% increase in average hourly earnings last month, also has put pressure on the central bank to proceed raising rates.
The Fed’s benchmark overnight borrowing rate reached a goal range of three.75%-4% after six consecutive hikes this yr. Major U.S. stock indexes have struggled this week, partly resulting from concerns of a slowing economy and expectations of more rate increases ahead.
The Fed is anticipated to hike rates again at its meeting next week.
Despite the concerns felt by investors, economic resilience will position the U.S. to turn out to be a middle of “investment, productivity and innovation” over the following few years, Deese said.
“We were out in (Phoenix) yesterday with a set of CEOs who all underscored this, that whilst we’re this transition and navigating through this historically unique transition, the US looks higher as a prospect to speculate, and that is going to be a driver,” Deese said. “That is going be where we get our innovation and our productive capability, beyond the following month or two.”
