TRENTON, NJ – New Jersey Governor Phil Murphy this weekend said the United States economy under President Joe Biden would not tank but stay cool. Murphy, a possible contender for the Democrat party’s nomination for President in 2024, sporting a new, longer hairstyle spoke to CNBC’s Squawk Box.
When it comes to the economy and inflation, there’s going to be more pain for all of us, the governor told the network. Murphy is expecting at least one more year of inflation and financial discomfort before things start to turn around.
Murphy said New Jersey tax revenues remain strong, especially when it comes to sale taxes collected in the state.
“The sales tax revenues tell us that people are still consuming at a pretty solid clip,” Murphy said, saying, however, in recent weeks, that too has been cooling. “Our unemployment rate is the lowest it’s ever been, and we have a huge surplus.”
Murphy says inflation under Biden’s leadership has inflicted “pain at the kitchen table” are causing problems for New Jersey residents. He blamed the war in Ukraine without saying the Democrat catchphrase, “Putin Price Hike”.
CNBC says inflation is at 7.7% while food inflation is at 11% and energy inflation is at 17.6%. However, despite those statistics, New Jerseyeans are paying nearly twice as much for many food essentials this year than they paid last year. Those hikes include the doubling of milk, dairy, eggs and bread.
“This brings me no joy, but this is brutal at the kitchen table,” Murphy said. “The fed continues to overcorrect. I’m on the side of aggressive behavior. A lot of inflation isn’t the reality of the math, it’s the sentiment.”
Murphy said he is optimistic that positive sentiment will feed the economy in six to twelve months.
“I don’t say that with any glee because that means more pain for all of us,” the governor added.
“I’m worried,” Murphy said. “Whether that’s a recession or how deep of a recession, I don’t know.”
While most New Jerseyans are struggling financially, Murphy said the state is loaded with cash, including American Rescue Plan and infrastructure cash piles waiting to be spent.