ICYMI: More Economic Progress This Week

President Biden's economic plan is delivering for the middle class and working families. Just this week: The President announced an agreement with Mexico to protect American steel and aluminum workers by closing a loophole left in place by his predecessor. The President made a historic investment to help ensure the future of the auto industry is made in America by American workers—creating and retaining thousands of union jobs. The Administration announced the recovery of $1 billion in unpaid taxes from millionaires thanks to the President's Inflation Reduction Act, and made the largest-ever investments in Registered Apprenticeships. Inflation fell to 3% and prices fell last month—with wages rising faster than prices for 16 months in a row. And a new report found that communities left behind by the previous administration are making a "remarkable comeback," creating jobs five times faster under President Biden.

While President Biden keeps delivering results for working Americans—from steel and auto workers to families who need more breathing room—Congressional Republicans are trying to repeal lifechanging investments, benefitting special interests at the expense of the middle class.

See more below:

CNBC's Squawk on the Street: NEC Director Lael Brainard: Consumer brand companies really need to lower their prices

LAEL BRAINARD: "The President is pushing back. Grocery prices have got to come down, and we are seeing over the last five months that they're flat. We're seeing large grocery chains actually lowering prices on thousands of goods and answering the President's call and responding to consumers… They need to bring prices down and pass those along to American consumers."

MSNBC's Andrea Mitchell Reports: Americans can expect 'lower prices not just less inflation': Top WH economic adviser

JARED BERNSTEIN: "This is a really important inflation report from the perspective of consumers. The inflation actually ticked down in June. Prices went down by a tenth. We saw price decline in some really salient areas for family budgets: gas, cars, appliances, electricity, airfares… Our work is not done and President Biden's cost cutting agenda is as important as ever. We will continue to implement it, but boy, this is a sign that we are moving in the right direction. It doesn't just show up in prices. It also shows up in real wage gains, which have been important in terms of boosting families' buying power, so great report."

CNN News Central: Prices Fell in June for the First Time Since Start of the Pandemic

GENE SPERLING: "This President's economic policy agenda is laser focused on bringing down prices and costs for families across the board, not just in food, but from childcare to prescription drugs. This really marks a degree of progress that i think is worth noting. Yes, the entire world has experienced inflation after the pandemic, but today we saw an actual decline in prices. And over the last three months, we've seen inflation at just 1.1% annualized and if they look at what the federal reserve likes to look at, which is called the PCE inflation indicator that is at 2.6 6%, very close to their ideal goal of 2%. This is showing real progress, a consistent number of data points, which I think should give people full confidence that inflation is moving down and making progress."

Bloomberg: Balance of Power

AMOS HOCHSTEIN: "We have worked to maintain a balanced price and make sure the American economy is not hampered by higher prices and for American consumers, especially in the summer. I think we will continue to see that trend to bring prices down. This is something that has been important to the President, especially in the last three years. He has talked to me about this on a regular basis and that has not stopped. He wants to see prices come down as much as much as possible. With CPI prices out today showing that gasoline prices are lower, this means more pennies and dollars in people's pockets to be able to spend on other things especially the Summer."

NPR's All Things Considered: Biden's top economic adviser on the state of inflation in the U.S.

JARED BERNSTEIN: "We have a cost cutting agenda to targets groceries, targets junk fees, overdraft fees, or credit card fees airlines, that takes down the price of prescription drugs and insulin costs. This is the cost cutting agenda that the President is has directed his team to be pursuing now, for months and quarters on end. What we're seeing in a report like this one is that we're making progress, we're on the right track."

SiriusXM: The Michelangelo Signorile Show

JARED BERNSTEIN: "Overall prices actually fell last month. It's great to see inflation growing more slowly. Inflation was 9% back in June of '22, it's down two thirds from that on a year over year basis. But it's not that often that we can come out and talk about how prices are actually down. They're down for cars, down for appliances, groceries, electricity airfare important this time of year. So not are we not only are we seeing over the slightly longer term, slower inflation, which is very important. And getting back to kind of a more normal path for that very important part of the economy, or actually seeing price declines in some real really important areas of family budgets."

Protecting American Steel and Aluminum Workers

New York Times: Biden Announces Tariffs on Chinese Metals Routed Through Mexico
[Ana Swanson, 7/10/24]

The Biden administration took steps on Wednesday to prevent China from circumventing American tariffs on Chinese steel and aluminum by routing those imports through Mexico. […]

"Chinese steel and aluminum entering the U.S. market through Mexico evades tariffs, undermines our investments, and harms American workers in states like Pennsylvania and Ohio," Ms. Brainard said.

"When China's export surges harm our markets, whether directly or via other countries, we will act," she added.

Pennsylvania Capital Star: Pa. lawmakers praise Biden administration tariffs on Chinese steel and aluminum routed via Mexico
[Kim Lyons, 7/12/24]

Pennsylvania lawmakers lauded a Wednesday announcement from the Biden administration of a new joint effort from the U.S. and Mexico aimed at preventing China and other countries from evading tariffs on steel and aluminum imports.

"Chinese steel and aluminum entering the U.S. market through Mexico evades tariffs, undermines our investments, and harms American workers in states like Pennsylvania and Ohio," Lael Brainard, director of the White House's National Economic Council, said on a call with reporters. […]

"Western Pennsylvania and our people made the steel that built America, but bad trade policies tried to strip our region for parts and ship solid, union jobs overseas," U.S. Rep. Chris Deluzio (D-17th District) said in a statement Wednesday. "President Biden's announcement today takes dead aim at Communist China's exploitation of loopholes that allowed foreign steel and aluminum into the country through Mexico, undercutting our workers and industries here at home." […]

"For too long, the Chinese government has poured state money into Chinese steel companies," Biden said in Pittsburgh. "They're not competing, they're cheating." […]

On Wednesday, Casey called the Wednesday announcement "a victory for Pennsylvania workers and our Nation's steel industry."

Reuters: US, Mexico move to thwart China circumvention of tariffs
[David Lawder, 7/10/24]

The U.S. and Mexico on Wednesday announced new steps to fight the circumvention of U.S. tariffs on steel and aluminum by China and other countries that ship products through Mexico, implementing a North American "melted and poured" standard for steel.

The White House said that under a new policy implemented by President Joe Biden, steel product imports from Mexico will be subject to 25% U.S. "Section 232" tariffs unless the steel is documented to have been melted and poured in Mexico, the U.S. or Canada. […]

Mexico has agreed to require importers of steel products across its borders to provide more information on the country of origin of these products, Biden and Mexican President Andres Manuel Lopez Obrador said in a joint statement.

"Both countries will implement policies to jointly prevent tariff evasion on steel and aluminum, and strengthen North American steel and aluminum supply chains," the presidents said in the statement released by the White House.

Investing in Good-Paying Union Auto Jobs

The Verge: Shuttered auto plants will become EV factories thanks to $1.7 billion Biden program
[Andrew J. Hawkins, 7/11/24]

The Biden administration announced $1.7 billion to convert endangered or shuttered plants into electric vehicle manufacturing facilities.

Eleven auto factories across eight states that are currently closed or at risk of closing will receive the funding in order to retrofit their operations for EV manufacturing, administration officials said in a call with reporters. […]

"Building a clean energy economy can and should be a win-win for union autoworkers and automakers," President Joe Biden said in a statement. "This investment will create thousands of good-paying, union manufacturing jobs and retain even more—from Lansing, Michigan to Fort Valley, Georgia – by helping auto companies retool, reboot, and rehire in the same factories and communities."

Detroit News: Biden administration giving GM, Stellantis more than $1B to stop plant closures, build EVs
[Grant Schwab, 7/11/24]

The federal government is providing $1.7 billion in grants to help revitalize 11 shuttered or at-risk auto manufacturing and assembly facilities — including two in Michigan, the White House and Department of Energy said early Thursday.

The grants will go to projects across eight states — Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland and Virginia. Collectively, according to the Biden administration, the projects could result in the creation of 2,900 new jobs and the retention of 15,000 current ones.

"This investment will create thousands of good-paying, union manufacturing jobs and retain even more — from Lansing, Michigan to Fort Valley, Georgia — by helping auto companies retool, reboot, and rehire in the same factories and communities," President Joe Biden said in a statement. […]

"There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry," said U.S. Secretary of Energy Jennifer M. Granholm, a former Michigan governor. "Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive — and does it in the communities and with the workforce that have supported the auto industry for generations."

WILX (Lansing, MI): Energy Secretary Granholm visits Michigan, announces over $1B to build EVs
[Zachariah Wheaton, 7/11/24]

More federal funding to assist automakers transitioning to electric vehicles is on the way, the Biden administration announced Thursday.

At the GM Lansing Grand River Assembly plant on Thursday, Energy Secretary Jennifer Granholm announced the plant will receive a $500 million grant to assist in its transition to EVs. The grant will help the plant keep 650 jobs and create 50 new ones. The money will add to the $900 million GM has already invested.

The money is part of $1.7 billion in grants the Biden administration is giving out to keep plants open and build EVs. 11 plants across eight states will receive funding as part of the Department of Energy's Domestic Automotive Supply Chain Conversion Grants program. All together the projects are expected to help U.S. automakers hold onto 15,000 jobs and create 3,000 new jobs.

"We're going to save hundreds of jobs; we're going to create even more at this plant," Granholm predicts.

The Gander: Michigan set to be 'EV Capital of the World' as federal funds help retool automotive factories
[Kyle Kaminski, 12/11/24]

US Energy Secretary Jennifer Granholm said a $500 million federal grant awarded this week to an automotive assembly plant in the Capital City will help to protect hundreds of jobs and propel Michigan to the forefront of the nationwide transition to electric vehicles.

The former two-term Michigan governor returned to her old stomping grounds in Lansing on Thursday to announce the federal funding, which is set to help General Motors with a massive, $1.4 billion retooling of its Grand River Assembly Plant to support electric vehicle production.

"Instead of standing on the sidelines while other countries poach our jobs, we're back in the game, baby," Granholm said during a press conference on Thursday. "The United States is back in the global game of getting manufacturing to come here rather than seeing it go overseas. We're bringing it back to the workers who started it all, to the communities that we love." […]

"This factory will stay open and your job will remain right here in Lansing, Michigan," Granholm said. "We're going to save hundreds of jobs. … We want to assist in converting facilities that would otherwise be closing, so companies have a reason to stay in historic auto communities."

Making Millionaire Tax Cheats Pay What They Owe

CBS News: IRS says it has clawed back $1 billion from millionaire tax cheats
[Aimee Picchi, 7/11/24]

The IRS said Thursday that its plan to crack down on wealthy tax cheats is paying off, with the agency collecting more than $1 billion since targeting high-income earners who owe the government money. […]

"President Biden's Inflation Reduction Act is increasing tax fairness and ensuring that all wealthy taxpayers pay the taxes they owe, just like working families do," U.S. Secretary of the Treasury Janet Yellen said in a statement. "A new initiative to collect overdue taxes from a small group of wealthy taxpayers is already a major success, yielding more than $1 billion in revenue so far."

CNBC: Treasury, IRS announce 'major milestone' of $1 billion in past-due taxes collected from millionaires
[Kate Dore, 7/11/24]

The U.S. Department of the Treasury and the IRS on Thursday announced what they called a "major milestone" of collecting more than $1 billion in tax debt from high-income individuals over the past year.

With tens of billions in new funding, the IRS announced plans in September to expand its scrutiny of those making above $1 million annually with more than $250,000 in recognized tax debt.

"The IRS has collected $1 billion from millionaires and shown that it can successfully launch strategic new initiatives and achieve the greatest return on investment," Treasury Secretary Janet Yellen told reporters during a press call.

CNN: IRS collected $1 billion in back taxes from millionaires in less than a year
[Katie Lobosco, 7/11/24]

The Internal Revenue Service said Thursday that it has collected more than $1 billion in past-due taxes from millionaires since last fall – thanks to a ramp up of enforcement efforts funded by the Democrat-backed Inflation Reduction Act that passed Congress nearly two years ago.

The Biden administration is eager to show how the IRS is using the money to crack down on wealthy tax cheats and improve taxpayers services. Republicans, who have criticized the funding as wasteful spending, have made several efforts to chip away at the 10-year investment provided by the legislation.

Last fall, the IRS launched an initiative to collect from wealthy individuals who have not paid the taxes they owe. The agency identified about 1,600 taxpayers with more than $1 million in income and more than $250,000 in tax debt. To date, more than $1 billion has been recovered from those individuals, and the effort is ongoing.

Prior to the Inflation Reduction Act, the IRS did not have the staffing or resources to pursue high-income earners that the agency knew owed taxes, IRS Commissioner Danny Werfel said on a call with reporters.

Largest-Ever Investments in Registered Apprenticeships

Associated Press: Biden administration goes bigger on funding apprenticeships, hoping to draw contrast with GOP
[Josh Boak, 7/11/24]

The Biden administration said Thursday that it's providing $244 million to expand and update the federal government's registered apprenticeship program — an effort to bring more people into higher-paying work that doesn't require a college degree.

White House Domestic Policy Adviser Neera Tanden and Acting Labor Secretary Julie Su are announcing the financial commitment in Williamsport, Pennsylvania. The funding is the highest sum in the apprenticeship program's history, with the money going to 32 states and 52 grantees. […]

"This really is a stark contrast to where Republicans are writ large," Tanden said. "While previous administrations tried to talk about this or use it as a talking point, this administration has really delivered."

The House Republican budget plan would cut the apprenticeship program by 47%, despite employers saying they need more skilled workers. The low 4.1% unemployment rate has left many companies saying they are unable to fill jobs in construction, manufacturing and other sectors.

PennLive: Pa. college gets $4M grant, to launch semiconductor apprentice program
[John Beauge, 7/11/24]

The Pennsylvania College of Technology plans to launch a semiconductor technician apprenticeship available to employers anywhere in the country.

That was revealed Thursday after U.S. acting Labor Secretary Julie Sue announced the special mission affiliate of Penn State has been awarded a $4 million grant to expand its apprenticeship programs.

The money was awarded because the "college knows how to do it right," she said.

Williamsport Sun-Gazette: 'Historic investment': Pennsylvania College of Technology welcomes White House officials for $4M grant announcement
[Mark Maroney, 7/12/24]

Pennsylvania College of Technology became the epicenter of a nationwide investment by the Biden administration in apprentice and pre-apprentice programs that provide students with the skills needed to match what today's advanced manufacturing and high-tech workforce demands.

"Today's historic investment in Registered Apprenticeships — the superhighways of our workforce infrastructure system — demonstrates the Biden-Harris administration's commitment to both America's workers and employers," said Acting Secretary of Labor Julie Su during a visit Thursday morning to the college campus and announcement of a $4 million grant to be used by the college in its Registered Apprenticeship program.

The award, totalling more than $244 million nationwide, is expected to help to expand, strengthen and diversify programs that aren't just "one-offs."

"They create a pipeline of workers with in-demand skills, connecting them with good jobs that create real security for workers and their families," Su said. "This interconnected system will help to ensure that all communities benefit from the jobs created by President Biden's Investing-in-America agenda."

Inflation Falls to 3% and Prices Fall Last Month

AFP: US consumer inflation eases more than expected
[Beiyi Seow, 7/11/24]

US inflation cooled more than expected in June, government data showed Thursday, a positive development for President Joe Biden […]

"Today's report shows that we are making significant progress fighting inflation," Biden said in a statement.

While costs of cars and appliances are falling, he conceded that prices remain too high and pledged to "do everything I can for the working people that built our economy."

Investopedia: Believe It Or Not: Lower Inflation and Higher Wages Have Made Paychecks Go Further
[Diccon Hyatt, 7/11/24]

June's better-than-expected inflation report was the latest in a series of data showing paychecks are growing faster than bills. As of June, average hourly earnings grew 3.9% over the last year, while Thursday's Consumer Price Index (CPI) report showed prices had only risen 3%, according to data from the Bureau of Labor Statistics. […]

Put another way, paychecks have risen faster than price tags. […]

Grocery prices have risen 1.1% over the year, according to the CPI, versus the 3.9% increase in typical wages, noted Kirabo Jackson, a member of the White House Council of Economic Advisors, in an interview.

"You can buy about 2.8%, almost 3% more food at the grocery store than you could a year ago," he said. "That's a meaningful increase. That's a real thing."

CBS News: In a boost for consumers, U.S. inflation is cooling faster than expected
[Kate Gibson, 7/11/24]

Consumer prices declined 0.1% in June from May, with inflation curtailed by lower gas prices and a smaller increase in costs at the grocery store. On an annual basis, inflation registered at 3.0%, down from 3.3% in May, indicating that inflation is cooling faster than expected, as economists polled by FactSet had forecasted an increase of 3.1%.

The reading is the lowest since June 2023, when prices also rose at an annual rate of 3%.

Communities Left Behind Making 'A Remarkable Comeback'

New York Times: The Morning Newsletter: A Remarkable Comeback

America's so-called "left behind" counties — the once-great manufacturing centers and other distressed places that struggled mightily at the start of this century — have staged a remarkable comeback. In the last three years, they added jobs and new businesses at their fastest pace since Bill Clinton was president.

The turnaround has shocked experts. "This is the kind of thing that we couldn't have even dreamed about five or six years ago," said John Lettieri, the president of the Economic Innovation Group, a think tank that studies economic distress in the U.S. His group is releasing a report today that details the recovery of left-behind counties. […]

As a candidate in 2016, Trump promised to revitalize those areas. In his first three years in office, before the pandemic hit, the national economy was strong. Unemployment was low. Wages were rising. But left-behind counties saw few of those benefits.

In 2018, a colleague and I noted that left-behind counties that voted for Trump had not seen any net job gains the previous year. The new Economic Innovation Group analysis shows that, in terms of job growth, left-behind counties experienced three of their four worst years since the Great Recession on Trump's watch. […]

Left-behind counties added jobs five times faster in the first three years of the Biden administration than they did in the first three years of the Trump administration. The flow of residents leaving them for better opportunities slowed.

Perhaps most strikingly, they have shared in a new-business boom that has swept the country since the pandemic. That didn't happen after the Great Recession. From 2009 to 2016, for example, Bay County, Mich., lost 8 percent of its business establishments. Since 2020, it has gained 12 percent.

Axios: Playing catch up
[Emily Peck, 7/11/24]

The country's 1,000 "left behind" counties had the strongest three-year period of job and business growth since 2000, the Economic Innovation Group reports.

Context: The think tank defines "left behind" as regions with population growth and median household income that lagged behind the national average from 2016 to 2020.

But since 2020, things have gotten better — annual job growth was five times faster in the three years after 2020 than it was over the three years prior. […]

On Tuesday in a call with reporters, top White House economist Lael Brainard touted the widely covered report, crediting much of the growth to the administration's signature legislation that focused on these left-behind regions.