A week before the U.S. presidential election, U.S. Treasury Secretary Janet Yellen reiterated her arguments for the strength of the U.S. economy under the Biden administration.

"When President Biden and Vice President Harris took office, thousands of Americans were dying each day from COVID-19. The unemployment rate was 50 percent higher than it is now," Yellen said at the American Bankers Association event.

"Today, by contrast, the U.S. economy is strong," she added. "We've seen robust economic growth, bolstered by solid consumer spending and business investment, even while inflation has come down significantly from its peak."

Higher Cost of Living: While the cost of living has increased, wages are rising faster than the cost of goods, Yellen explained.

"The typical American can afford more goods and services than before the pandemic. And Americans are starting new businesses at a record rate, reflecting optimism about the economy," she said.

American voters in so-called battleground states do not appear as optimistic and lean toward Republican Donald Trump, despite economists' warnings.

A recent Reuters/Ipsos poll showed that 61% of voters in battleground states say the economy is on the wrong track. About 68% say the same about the cost of living.

As the cost of living rises, American consumers have become increasingly focused on value and affordability. Mega-retailers, Walmart, Inc. (NYSE:WMT) and Target Corp. (NYSE:TGT), are aggressively lowering prices on groceries and household necessities and drawing more mid- and high-income customers than ever before.

Dollar stores, including Dollar General Corp. (NYSE:DG) and Dollar Tree, Inc. (NASDAQ:DLTR), are reeling from the increased competition in the discount and affordable goods space. Both companies have reported a drop in foot-traffic and sales as the larger stores' focus on value has eroded their customer bases.

Election Day Approaches: As the close of voting approaches, Yellen's statements serve to reinforce the Biden administration's economic narrative of recovery, growth and the importance of maintaining current policies for continued economic stability.

The Treasury Secretary warned that "deviating from our current course could jeopardize our economic trajectory."

Voters will express their views on the state of the economy and other issues when ballots are counted in the U.S. presidential election on Nov. 5.

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Photo by Dustin Blitchok