White House senior adviser Gene Sperling is stepping down from his position.

Sperling’s extensive experience includes serving as the director of the White House National Economic Council under both Bill Clinton and Barack Obama. Under President Joe Biden, Sperling managed the implementation of the $1.9 trillion pandemic aid package, which which aided in the blistering inflation we are all facing. He also acted as the White House liaison during the union and car company negotiations in the auto strikes.

President Biden praised Sperling’s contributions, stating, “Under Gene’s leadership, the American Rescue Plan has delivered economic relief to cities and counties across the country, protected millions of union pensions, made the largest-ever federal investment in public safety, and kept thousands of small businesses afloat.”

Sperling’s resignation coincides with one of the worst days for the US stock market since 2022, coming just days after Biden claimed to have healed the economy. Last week, Biden made a bold statement, asserting that he had “cured the economy.” This comment was made to reporters outside the White House, emphasizing that the economy would be a significant part of his presidential legacy.

When asked by a reporter what he wanted his legacy for Gen Z to be, Biden responded, “That I cured the economy. And the environment. And a few other small things.” However, this statement quickly became the subject of ridicule online, as a global market meltdown on August 5 caused Wall Street’s fear gauge to spike to its highest level in four years.

Did you know: Biden “cured the economy” last week? 🙄pic.twitter.com/gkcnlq0yMx

— Kyle Becker (@kylenabecker) August 5, 2024

The Cboe Volatility Index (VIX), which measures investor fear, jumped 172% to 62.27 before trading opened on Monday. This spike marked the highest level for the index since March 2020, at the onset of the COVID-19 pandemic. The VIX is based on the price of S&P 500 stock options and is used to measure expected market volatility.

Since the start of the pandemic, the VIX index had remained relatively stable, not closing above 40. However, it began to surge last week following the weaker-than-expected July jobs report, which reignited fears of a recession. The Labor Department reported that the economy added just 114,000 workers last month, while the unemployment rate rose to 4.3%, the highest since October 2021. This report added to growing concerns that the economy is weakening under the pressure of high interest rates.

The rise in unemployment triggered the Sahm Rule, an early recession indicator. The Sahm Rule suggests a recession is likely when the three-month moving average of the jobless rate is at least a half-percentage point higher than its 12-month low. This latest data has heightened fears of an impending recession, further complicating the political landscape as Harris gears up for her campaign against Trump.

Sperling is headed to advise the Kamala campaign on how to deal with the economy.