Analysis: Joe Biden and the American economy just got a double dose of good news

First, the labor market seems to be rounding a corner — lastly — in its restoration from Covid-19 shutdowns, as employers added greater than half 1,000,000 jobs final month, handily exceeding expectations.

The inventory market surged on the double dose of optimism. The Dow was up round 300 factors, or 0.8%, on the opening bell.

It’s exhausting to think about something however excessive fives and cheers within the West Wing with these headlines circulating, all earlier than 9 am ET. As the White House rolls out contentious vaccine necessities for roughly 100 million Americans, Biden may hardly ask for higher numbers to bolster his case that vaccinations are the important thing to getting the economic system again on monitor.

“This did not happen by accident or ‘just because,'” Biden stated Friday in deal with on the sturdy jobs report. “We laid the foundation for this recovery with my American Rescue Plan that Congress passed at the beginning of my term.”

All of that comes on the heels of some doubtlessly excellent news about inflation this week: The Fed is beginning to faucet the brakes on its emergency financial stimulus program. That may sluggish surging costs and assist Biden make a greater case for his Build Back Better financial agenda, which Congress was anticipated to vote on Friday.

A Moody’s Analytics report launched Thursday paints sunny macroeconomic image as a backdrop to Biden’s proposal.

“Concerns that the plan will ignite undesirably high inflation and an overheating economy are overdone,” the report says. “The fiscal support it provides will ensure the economy only returns to full employment from the recession caused by the Covid-19 pandemic.”

Of course, the economic system stays in restoration mode. But October’s labor market report might characterize a turning level. The unemployment charge fell to 4.6% — the bottom its been because the restoration started in May 2020. Jobless claims are additionally falling. Last week, about 269,000 individuals file for unemployment, a pandemic-era low.

For comparability, when Biden took workplace in January the unemployment charge was 6.3%, and jobless claims have been coming in scorching at round 900,000 per week.

All of that’s some a lot wanted excellent news for the economic system and for Biden, whose approval score final month hit the lowest level of his administration.

Neither the economic system nor the President is out of the woods. Energy costs are hovering simply as chilly climate creeps in; employers are nonetheless struggling to fill jobs and hundreds of thousands of Americans aren’t returning to the labor pressure. The quantity of people that weren’t within the workforce however need a job stood at 6 million final month, nonetheless almost 1 million greater than earlier than the pandemic.

“There’s still more work to do,” tweeted press secretary Jen Psaki on Friday, “but we’ve made incredible progress so far in getting Americans back to work, thanks to the Rescue Plan and getting shots in arms.”

— CNN Business’ Anneken Tappe contributed to this report.

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