Anthony Albanese is welcomed into Joe Biden’s private home after his misguided claims about the US economy were debunked by top White House advisor

Anthony Albanese has had “warm and engaging” talks with the outgoing US president and exchanged gifts with Joe Biden at his personal home ahead of a summit focused on strategic partnerships in the Indo-Pacific region.

The prime minister is in the US state of Delaware for the fourth face-to-face meeting of the Quad with leaders of the US, Japan and India.

However, hours earlier, a former economic adviser to Barack Obama had criticized Albanese for his misleading claims about the US economy.

Australia’s Prime Minister was asked about the US Federal Reserve’s massive 50 basis point rate cut, but he got basic facts about the economy wrong.

“Because the economy is so slow, they (the US) are cutting rates,” he told ABC Radio National announcer Patricia Karvelas on Thursday.

However, the US economy is booming compared to Australia, with gross domestic product growing at 3 percent in the year to June 2024.

In contrast, the Australian economy grew by a meagre 1 percent in the last fiscal year, taking the economy to levels not seen since a recession.

This was the lowest annual growth since 1991, barring a pandemic, thanks to the Reserve Bank of Australia’s 13 rate hikes.

Betsey Stevenson, who served in the Obama administration The Council of Economic Advisers criticized Albanese for misinterpreting the US Federal Reserve’s first interest rate cut in four years.

“This is a signal that he is not listening to the people around him who understand macroeconomics,” she wrote on X, referring to a story by Peter van Onselen, political editor of Daily Mail Australia.

The Quad summit may be Biden’s “final lap of honour” but Australia will still play a crucial role, experts say.

While security and stability in the Indo-Pacific region will be the main topics of discussion, this will be the last summit in which the outgoing US president will participate.

Mr Albanese said it was a privilege to spend time with Mr Biden on Friday evening, ahead of a meeting of Quad leaders.

“It was a very warm and interesting conversation… a conversation between allies and a conversation between friends,” Albanese told reporters.

‘I understand that it was the first time that a foreign leader met him at his home, so I consider it a great honor.

The two exchanged gifts — a leather Air Force jacket for Biden and a book about the Catholic high school the president attended for the prime minister — where the two are scheduled to meet Indian Prime Minister Narendra Modi and Japanese Prime Minister Fumio Kishida on Saturday.

The 90-minute meeting, ahead of the US presidential election, discussed defence and security cooperation in the Indo-Pacific region and the AUKUS partnership, including Australia’s progress toward a nuclear submarine fleet.

Mr Albanese said there is broad support across the political spectrum for the partnership with AUKUS.

“I have no doubt that AUKUS will continue to receive the support of a future US administration,” he said.

Economic issues such as inflation and supply chains were also discussed, as well as climate action and clean energy.

The pair also discussed the ongoing conflicts in Ukraine and the Middle East.

Regional challenges will be the subject of further discussions during the Quad meeting.

According to Susannah Patton, Southeast Asia program director at the Lowy Institute, the Quad presented a united front in the region, despite perceptions that it had not delivered tangible results.

“The Quad is in many ways the centrepiece of the Biden administration’s Indo-Pacific strategy, so it is important for the US to make this final victory lap and end on a high,” she told AAP.

Australia may be the smallest country in the Quad, but Ms Patton said it would play a crucial role because of its proximity to Pacific countries and China.

The upcoming Quad meeting will not be much different from previous summits, but it is important that the group shows real results, said Tom Corben, a researcher at the United States Studies Centre.

“The idea that the Quad is a precursor to US strategy in Asia may be overblown,” he told AAP.

‘The time for flashy statements is over and it is time for concrete action.’

Biden dropped out of the presidential race in July after endorsing Vice President Kamala Harris amid criticism of Harris’ age and concerns about his health as he ran for another four-year term.

Mr Albanese called it a fascinating meeting with the 81-year-old American politician.

“He is fit, he is fully committed to his duties and it is a great privilege to spend time with him,” he said.