President Joe Biden arrives in the White House in 2021 — a time of growing chaos and uncertainty across a country reeling from the pandemic. In his inaugural address, Biden expressed a desire to promote unity, hoping to deliver a nation that is “stronger, more prosperous, more ready for the future.”
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| Under the leadership of President Joe Biden's administration, there has been a series of good news recently 'knocking on the door' of the US economy. Illustration photo. (Source: Reuters) |
But as the US leader has acknowledged throughout his tenure, there is still much work to be done. That task may now fall to Vice President Kamala Harris - the person Mr. Biden has entrusted with his 2024 US presidential campaign.
Mr. Joe Biden withdrew from the re-election race on July 21 and supported Ms. Harris to run in the US presidential election on November 5, facing Republican presidential candidate Donald Trump.
Recently, there has been a series of good news "knocking on the door" of the world's largest economy.
Stronger-than-expected second-quarter US economic growth and the possibility that the country is achieving the rare feat of reducing inflation without sending the economy into a hard landing give Harris a boost.
Here's how the world's largest economy stands as the presidential race enters its 100-day "sprint."
Inflation, Interest Rates and the Resilient Economy
When Mr Biden took office, inflation was barely noticeable, with consumer prices rising 1.4% a year. The problem quickly got worse.
By June 2021 — Biden's sixth month in office — the nation's inflation rate had risen to more than 5%.
Then, in February 2022, Russia launched a special military operation in Ukraine, causing energy prices to skyrocket and inflation to reach 9.1%, the highest level in more than 40 years. Inflation spiked in part due to massive post-pandemic spending.
Inflation has cooled considerably since then. By June 2024, the Commerce Department reported that the personal consumption expenditures (PCE) price index fell to 2.5% in June 2024, down from 2.6% in May 2024.
Overall, however, Americans are paying 20% more for goods and services than they did in January 2021.
To combat inflation, the Fed raised interest rates to a 23-year high. The economy is operating at a slower pace but is not yet in recession.
In addition, gross domestic product (GDP) — a measure of all goods and services produced in the economy — held steady. GDP grew at a robust 2.8% annual rate in the second quarter of 2026, after adjusting for inflation and seasonal fluctuations, according to data released by the Commerce Department on Thursday.
The job market is starting to cool down.
In April 2020, as the US economy took a hit from the pandemic, the country's unemployment rate spiked to nearly 15% - the highest since the US Bureau of Labor Statistics began keeping track in 1948.
The unemployment rate fell to 6.4% early in Biden’s term. It will stay below 4% for more than two years (2022 and 2023) — the longest stretch since the 1960s.
The rate then exceeded 4% as cracks in the labor market began to form.
By June 2024, the unemployment rate was at 4.1%, the highest since October 2021 and higher than the 4% forecast by experts.
A $1.2 trillion bill has been signed.
On November 15, 2021, US President Joe Biden signed into law the $1.2 trillion infrastructure bill at the White House, marking an important achievement in his first term after weeks of negotiations in the House of Representatives.
While it will take years, if not decades, for the full impact of the sweeping legislation to be realized — funding, construction and enforcement take time — the U.S. economy has seen some short-term effects, including a boom in industrial facilities, electric vehicles and manufacturing jobs, and the launch of long-awaited urban projects to replace bridges and pipelines.
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| US domestic oil production hit a record in 2023, with a daily average of 12.9 million barrels of oil produced. Illustration photo. (Source: AFP) |
Boosting clean energy and oil production
Biden’s energy legacy is tied to clean energy, not fossil fuels. His 2022 Deflator Act includes more than $350 billion in subsidies for electric vehicles, charging stations and the like.
Not only that, domestic oil production hit a record in 2023, with a daily average of 12.9 million barrels of oil produced.
That's more than any other country has ever produced. Production is up 3% so far in 2024.
Relief for the American people
In April 2024, President Joe Biden announced five major actions to further reduce student debt, including canceling up to $20,000 in principal and accumulated interest, regardless of current income.
The White House said President Biden's new plan would help reduce debt for more than 30 million Americans, including eliminating accumulated interest for 23 million people, eliminating all student debt for another 4 million people, and reducing at least $5,000 for more than 10 million people.
His administration also provided economic relief to families during the pandemic. He signed into law the American Rescue Plan Act of 2021 — one of the largest federal efforts to reduce poverty in half a century.
Record in technology field
Mr Biden signed a high-profile bill in April 2024 to ban the Chinese-owned video-sharing app TikTok unless it finds a new owner, citing national security concerns.
The current president has made a strong push for domestic chip production and research with the bipartisan CHIPS and Science Act of 2022, part of an effort to help the US regain its position as a leading semiconductor chipmaker.
Stock market boom
Here's how the stock market performed in each year of President Biden's term.
2021: The Standard & Poor’s 500-stock index (S&P 500) rose 27%. The stock market prevailed despite the Covid-19 pandemic. But investors began to worry about the possibility that the Fed would raise interest rates for the first time since March 2018 and end the era of “easy money.”
2022: S&P 500 down 19%. Stocks fall as the Fed rapidly raises interest rates near zero to curb inflation, raising concerns that high borrowing costs could eat into corporate profits.
2023: S&P 500 up 24%. Stocks have a strong year, despite the Fed's continued rate-hike campaign. That's largely thanks to the artificial intelligence (AI) boom, which has led to a surge in seven key tech stocks.
2024: The S&P 500 is up about 16% in the first half of the year, after hitting record highs back to back. Strong corporate earnings have helped push stocks higher, as has the continued AI boom.
Cooling inflation data in recent months and hopes the Fed will soon cut interest rates have added to market excitement.
Experts say that in the race against Mr. Trump, at first glance, Mr. Biden's economic legacy gives Ms. Harris an advantage. However, there are still difficult problems that Ms. Harris needs to solve. That is, to erase the negative feelings that many Americans have about the economy, stemming from soaring prices and inflation!
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