Wall Street’s gains since Joe Biden was inaugurated into office have since dissipated, losing all of the momentum it once had and going back all the way to pandemic levels.
What was once a Biden talking point is now a mockery of itself as the S&P 500 closed 151 points below where it was in January 2021 on Monday. The Dow Jones Industrial Average and the Nasdaq Composite dropped by 876 points and 530 points respectively, well below the numbers they were at when Biden was inaugurated.
Despite the losses, the White House continues to maintain that the economy is in a historic good place.
Speaking at a press conference on Monday, Karine Jean-Pierre was asked by Fox News correspondent Peter Doocy about the state of the economy.
Doocy asked: “President Biden once bragged about the stock market 'hitting record after record after record on my watch.' How about now?”
“Meaning?” Jean-Pierre replied.
“All the gains from President Biden's time in office have been wiped out,” Doocy explained.
“So, as you know we are watching closely. We know families are concerned about inflation and the stock market. That is something the president is really aware of. And so, look, we face global challenges. We’ve talked about this. We’re not the only country dealing with what we’re seeing at the moment as it relates to inflation,” said Jean-Pierre.
“You know. Putin. Putin’s Price Hike. Inflation. Coming out of a once-in-a-generation global pandemic. All of these things play a factor. And, you know, but, the thing that we see is the American people are well-positioned to face these challenges because of the economic historic gains that we have made under this president in the last 16 months.”
The White House fell back on talking points, blaming Russian President Vladimir Putin for the economic ramifications caused by Biden’s failed American Rescue Plan, which is a part of his Build Back Better agenda.
Under Biden’s watch, numerous crises erupted even before Russia’s invasion of Ukraine, with numerous supply shortages hitting American businesses. Biden also terminated the construction of the Keystone XL pipeline and has come to rely on foreign oil to feed market demand.
As investors contend with the selloff and the S&P 500 enters a bear market, investors must now contend with the possibility that the federal reserve will yet again raise interest rates to counteract rising inflation.
The Wall Street Journal reports that investors are concerned with the threat of a recession.
While the White House continues to pretend that all is well under Biden, U.S. Treasury Secretary Janet Yellen shrugged off questions about the potential recession, telling CNBC that she doesn’t think it’s going to get that bad.
“Don’t look to me to announce it. I’m not going to announce it. I don’t think we’re going to have a recession,” said Yellen.