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WSJ Opinion: Potomac Watch

Biden Takes Credit as Recession Fears Ease

WSJ Opinion: Potomac Watch

The Wall Street Journal

News, Society & Culture

4.22.8K Ratings

🗓️ 3 February 2023

⏱️ 22 minutes

🧾️ Download transcript

Summary

Jobs growth pushes the unemployment rate down to 3.4%, the lowest since 1969, but with inflation still a problem, President Joe Biden and Federal Reserve Chair Jerome Powell aren't out of the woods yet. Plus, the GOP House votes to remove Ilhan Omar from the Foreign Affairs Committee, which Speaker Kevin McCarthy says isn't merely a tit for tat. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Business, finance, politics. There's a lot going on out there and the Wall Street Journal's

0:05.5

What's News podcast covers it all. Twice a day in less than 15 minutes. Navigate your

0:11.3

world with What's News wherever you get your podcasts.

0:19.2

From the opinion pages of the Wall Street Journal, this is Potomac Watch.

0:25.7

A solid jobs report pushes the unemployment rate to its lowest in 53 years. As the Republican

0:32.2

House of Representatives removes Democratic Congresswoman Ilhan Omar from the Foreign

0:37.4

Affairs Committee on a party line vote. Welcome, I'm Kyle Peterson with the Wall Street

0:41.8

Journal. We are joined today by my colleagues editorial board member, Maneu Uquibra-Rua

0:47.8

and columnist Kim Strassel. Welcome and happy Friday to you both. The Labor Department

0:52.3

said Friday that in January, the U.S. economy added a net 517,000 jobs, which was a figure

0:59.4

well above expectations, big gains in leisure and hospitality, and also state government

1:05.6

employment with some smaller gains in construction, mining and logging, and services of all kinds.

1:12.1

And the result of this is a 3.4% unemployment rate last month. The lowest level since May

1:18.2

of 1969. And Maneu, I'm wondering what is your read of this economy as we sit here now

1:24.8

that still looks at least to me somewhat strange?

1:27.8

Yeah, that's right. I think that the job numbers that were released this week will be

1:32.0

befuddling to a lot of people on Wall Street economists and others who have been betting

1:36.8

on recession in the near term. You should put a pin in worries about a recession, which

1:41.1

is to say nobody thinks that we're out of the woods yet. A lot of people are still

1:45.9

betting that we're going to have one in the first half of this year and certainly by year

1:50.0

end. That is what the economists project and that also is what businesses are showing

1:54.1

in their long term projections. Employers who are adding jobs now in the short term to

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