President Joe Biden and Treasury Secretary Janet Yellen say a U.S. recession is not inevitable, dismissing the concerns of many economists who have predicted an impending recession. In addition, Biden insisted that the US “will outperform this inflation”, while Yellen admitted that “inflation is unacceptably high”.
Biden: The American recession is not inevitable
President Joe Biden told reporters Monday in Rehoboth Beach, Delaware, that a recession in the United States is not “inevitable.”
Asked by Biden about a possible recession, a journalist said: “Economists say a recession is more likely than ever.”
The president quickly interrupted the journalist, saying, “Not the majority. Come on, don’t invent things. “Biden added,” Now you sound like a Republican politician. I’m kidding. That was a joke, that was a joke. “
Stating that “all jokes aside,” the president continued:
No, I don’t think so. I was talking to Larry Summers this morning, there is nothing inevitable about a recession.
Biden referred to the conversation he said he had with former Treasury Secretary Lawrence Summers, who told NBC on Sunday, “My best guess is that there is a recession.”
Summers explained his prognosis of recession: “This is based on the fact that we have not experienced a situation like the current one, with inflation above 4% and unemployment above 4% without continuing in a year or two a recession. So I think the Fed is likely to do what it takes to stop inflation by raising interest rates enough for the economy to fall into recession. “
This was not the first time Biden had dismissed concerns about the arrival of a recession in the United States. In an interview with the Associated Press after the Federal Reserve announced the biggest rate hike since 1994 last week, he said:
First, it is not inevitable. Second, we are in a stronger position than any nation in the world to overcome this inflation.
Yellen expects the US economy to slow down, but says the recession is not inevitable
Treasury Secretary Janet Yellen shares Biden’s optimism about the US economy. He told ABC News on Sunday that the recession many Americans fear is “not at all imminent.”
“I hope that the economy will slow down, it has grown at a very fast pace like the economy, as the labor market has recovered and we have reached full employment. Now it is only natural that we should look forward to the transition to stable, stable growth, “said Yellen.
But I don’t think a recession is inevitable.
However, the Secretary of the Treasury stressed: “Clearly, inflation is unacceptably high.”
Yellen also told The Times’ Dealbook DC policy forum earlier this month that “There’s nothing to suggest a recession is underway.”
What do you think of the comments made by President Joe Biden and Treasury Secretary Janet Yellen about a recession in the United States? Let us know in the comments section below.
Kevin Helms
An Austrian economics student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in the security of Bitcoin, open source systems, network effects, and the intersection of economics and cryptography.
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