US economy \`in strong shape\`: Joe Biden

The US economy is in a strong position_ President Joe Biden has said_ thanks to action taken by the government to free up supply chain blockages and tackle the rising cost of living.

He predicted that prices_ which have been rising sharply_ would ease.

The president said policies to tackle bottlenecks at ports and lower the price of fuel were working.

"We're heading into a holiday season on very strong shape_" he said. "It's not because of luck_"

Asked how supply chains would weather disruption from the new variant of coronavirus_ President Biden said he was an "optimist"_ but that it was too soon to know what the impact might be.

As a result of the economic recovery a typical American family was now better off than before the pandemic struck_ the president said_ describing a 40% reduction in child poverty as "a moral victory".

"Americans on average have about $100 (£75.33) more in their pockets every month than they did last year [and] about $350 more each month than they did before the pandemic_ even after accounting for inflation_" the president said.

Since taking office_ the Biden administration has pumped billions of dollars of stimulus into the US economy_ including direct cheques to households and tax breaks.

Economic growth has rebounded as the impact of the pandemic began to ease_ and after shrinking 30% in the first six months of 2020_ the economy is now back at the size it was pre-pandemic.

However_ higher demand for goods_ and on-going disruptions to the supply and delivery of those goods_ has helped push inflation up to 6.2% - the highest it has been for 31 years.

"I've used every tool available to address the price increases_" President Biden said.

Releasing part of the US's oil reserves last month_ in an action coordinated with several other nations_ to try to bring down the price of fuel had been "making a difference"_ he added.

Independent economic analysis indicated his Build Back Better bill would reduce inflationary pressures_ he stressed.

The bill was fully paid for_ and would contribute to deficit reduction_ by "making the largest corporations and the richest Americans pay a little more in taxes".