The Biden administration on Tuesday defended its economic plan following a weak April employment report and a fragile recovery.
In a memo addressed to White House senior staff, National Economic Council director Brian Deese and Council of Economic Advisers chair Cecilia Rouse listed data showing their strategy was “working”, including a downward trend in initial unemployment insurance claims and a robust first quarter GDP estimate.
However, the pair also cautioned that it would take time for the economy to transition from pandemic lockdowns to consistent growth.
“Reawakening dormant sectors of the economy has led to temporary imbalances between supply and demand, in addition to specific and limited supply chain bottlenecks,” the memo read. “But it is an encouraging sign that consumers are returning to sectors of the economy that retreated dramatically in the recession—restaurants, hotels, rental cars, airlines, and many others.”
The White House also addressed employment concerns as governors from many states announce the end of the $300 federal unemployment bump as businesses struggle to find workers.
