In January 2021, when Joe Biden took office as U.S. President, inflation was at 1.4%, according to data from the U.S. Bureau of Labor Statistics. Nearly a year and a half into his presidency, inflation did eventually reach 9.1%, but this occurred in June 2022 as the economy was experiencing rapid growth. High inflation is often a sign of economic overheating, and during Biden’s presidency, the U.S. saw the highest economic growth in nearly 40 years in 2021, with a GDP increase of 5.8% and unemployment rates falling to historically low levels.
The Biden administration implemented a hefty fiscal package to aid the country’s recovery from the effects of the COVID-19 pandemic, which led to significant economic growth but also contributed to supply-chain issues that fueled inflation. In response to rising inflation, the Federal Reserve began to increase interest rates to control it, a move that some economists predicted would lead to a recession. However, despite these concerns, the economy continued to grow, with a 2.5% increase in GDP in 2023.
In a recent interview, U.S. President Joe Biden repeated the claim that he had created 15 million jobs during his term, a statement that had been fact-checked in March 2024. While the economy initially showed signs of slowing down in the first quarter of 2024, with GDP growth at 1.6% and inflation rising 3.4%, it is important to note the broader context of the economic trends during Biden’s presidency, including the unprecedented economic growth seen in 2021 and the subsequent increase in inflation.
Critics of Biden have pointed out that inflation reached 9.1% during his presidency, but fail to mention that this occurred after a period of rapid economic growth. The Federal Reserve’s response to rising inflation by increasing interest rates was seen as a necessary measure to prevent the economy from crashing, although it did lead to concerns about a potential recession. Despite these challenges, the U.S. economy continued to grow, defying expectations of a downturn.
Overall, while inflation did reach 9.1% during Joe Biden’s presidency, it is inaccurate to claim that it was at that level when he took office in January 2021. The context of the economic trends during his tenure, including the significant economic growth seen in 2021 and the subsequent rise in inflation, is important to consider in evaluating his administration’s handling of the economy.
