Inflation relief for household budgets is nowhere in sight. The national average for the price of gasoline hit a record this month, at more than $5 per gallon, and is still hovering near that level, according to the AAA motor club. Energy Secretary Jennifer Granholm has warned US drivers against expecting quick relief on gasoline prices amid tight oil supplies worldwide.
With Americans’ financial foundations weakening, household purchases are at risk of slowing. The strain from gas prices and grocery bills was evident in a drop in the April savings rate to the lowest level since 2008.
But Biden’s team resists talk of a significant downturn.
“Right now, we don’t see a recession right now,” Jean-Pierre said. “We are not in a recession right now. Right now we are in a transition where we are going to go into a place of stable and steady growth and that’s going to be our focus.”
-With assistance from Alex Tanzi, Reade Pickert and Josh Wingrove.
This article was provided by Bloomberg News.