US President Joe Biden on Friday said the US economy is on the mend, with inflation gradually being tamed, and healthy employment data showing Americans are regaining optimism.

“Our economy is moving in the right direction,” Biden said at the White House, highlighting that he was confident about reducing persistently high inflation.

However, he warned that a dispute over raising the US debt ceiling poses “the biggest threat” to the economy.

Referring to strong jobs data out Friday, Biden said the aspect that “pleased me the most” were signs that people previously not looking for work were now back in the labor market.

“People are working again. They’re becoming more optimistic about their future,” he said.

Biden, who is expected soon to announce he is running for reelection in 2024, called out Republicans in Congress who are pressuring the party to refuse authorizing an extension of US borrowing limits.