LOS ANGELES, California – President Joe Biden outlined the measures that his government has put in place in its fight against inflation, during a speech in the port of Los Angeles this Friday.
Biden reviewed his measures against inflation, which according to this Friday’s report, reached the annual mark of 8.6%the highest since December 1981.
The president spoke of his negotiated agreements with the private sector, infrastructure spending, and regulatory actions. “The labor market is very strong, unemployment is at a record low percentage and Americans have more savings, so we can attack inflation from a position of strength,” Biden said.
The Port of Los Angeles is now moving a record 200,000 containers on a 30-day moving average. But the forces driving inflation have shifted towards rising energy and food costs following the Russian invasion of Ukraine.
The Democratic president’s speech coincided with the release of the May consumer price index, a key measure of the inflation.
The new report could be combined with average US gasoline prices rising above $5 a gallon, a nominal record that is hurting Biden’s public approval ahead of the midterm elections.
Gene Seroka, executive director of the Port of Los Angeles, said there were a lot of levers that made performance improve in terms of getting products to consumers and businesses faster.
But he specifically credited the “convening powers of the federal government to bring people to the table” and the Biden administration’s focus on supply chain.
“We have reduced the ships that have been waiting to enter the port by 75% this year,” Seroka said. “These guys are really working because we still have strong consumer demand.”
Strong consumer demand has been a mixed blessing for Biden. It reflects the strong job growth and strong household balance sheets that followed the $1.9 billion coronavirus relief package approved in 2021. But demand has consistently outpaced supply, causing prices to rise to levels that they force the Federal Reserve to try to curb growth and possibly risk a recession.
The White House said Biden planned to say in his comments on Friday that the US can tackle inflation without running into a recession. This is because the economy is so strong with an unemployment rate of 3.6% that it can withstand a slowdown.
The president also sought to frame inflation as a global challenge, triggered first by the pandemic and then by Russia’s invasion of Ukraine. Biden is trying to refute criticism from Republican lawmakers that the inflation was the result of his administration’s aid being too generous and its restrictions on US oil production too onerous.
Biden has tried to curb inflation by improving port operations and twice releasing oil from the US strategic reserve, in addition to other regulatory initiatives and a national agenda that includes reducing the budget deficit and would need congressional approval.
Before inflation became an economic and political threat, Biden had emphasized that his main goal was to improve the lives of working middle-class people. That could be tested as the union contract for the port expires on July 1 and workers try to increase their income and benefits.
Workers will continue to do their jobs after the contract expires, and it’s rare for a new contract to be reached early, said Jennifer Sargent Bokaie, director of communications for the Longshore Division of the Longshore and Warehouse Workers International Union. . She said there is an agreement between the union and the Pacific Maritime Association, which represents the port, not to discuss the status of contract negotiations with the media.
The port visit came as Biden has been organizing the Summit of the Americas in Los Angeles. On Friday he will also announce a statement on migration and hold a working lunch with heads of government and state attending the conference of Western Hemisphere nations.
And with the campaign season in mind, Biden will attend two fundraising receptions for the Democratic National Committee on Friday.