Biden hopes strong job market means soft landing for economy

For President Joe Biden, the past few days have raised hopes that the U.S. economy can stick a soft landing--possibly avoiding a recession as the 2024 election nears.

For President Joe Biden, the past few days have raised hopes that the U.S. economy can stick a soft landing--possibly avoiding a recession as the 2024 election nears.

Most U.S. adults have downbeat feelings about Biden's economic leadership, as high inflation has overshadowed a strong jobs market. It's long been economic orthodoxy that efforts to beat back inflation by the Federal Reserve would result in unemployment rising and the country sinking into recession.

But to the president and some economists, the April jobs report issued Friday challenged that theory with its 3.4% unemployment rate and 253,000 jobs gained.

The strong jobs report came after a Wednesday Fed meeting that suggested the U.S. central bank might pause on its rate hikes, the primary tool for cutting inflation from its still high 5% to something closer to 2%. Talks are also starting over the need to raise the debt limit -- with Biden inviting congressional leaders to the White House for a Tuesday meeting in hopes of ultimately getting a commitment to avoid a default.

For a president seeking a second term, Biden struck a confident tone Friday when meeting with aides even as he pushed GOP lawmakers for a clean increase on the debt cap.

"We're trending in the right direction and I think we're making real progress," he said about the overall economy, telling Republican lawmakers to not "undo all this progress" with the debt limit standoff.

The economy could still stumble. Several economists forecast a recession this year, considering the wild cards of the war in Ukraine, global tensions and the debt limit fight. But the steady job gains have suggested to some policymakers and economists that it's possible to curb inflation without layoffs.