President Joe Biden and Treasury Secretary Janet Yellen said a U.S. recession is not inevitable, dispelling fears many economists had predicted of an impending recession. In addition, Biden insisted that the U.S. will “overcome this inflation,” while Yellen admitted that “inflation is unacceptably high.”
Biden: U.S. recession is not inevitable
President Joe Biden reiterated to reporters Monday in Rehoboth Beach, Delaware, that a U.S. recession is not “inevitable.”
Asked about a potential recession from Biden, one reporter said, “Economists say a recession is more likely than ever.”
The president quickly interrupted reporters to say, “Not the majority. Forget it, don’t make it up.” Biden added: “Now you sound like a Republican politician. I’m kidding. That’s a joke, that’s a joke. .”
The president said “all jokes are off the table,” and he continued:
No, I don’t think so. I talked to Larry Summers this morning, and nothing is inevitable in a recession.
Biden referred to his alleged conversation with former Treasury Secretary Lawrence Summers, who said on NBC Sunday: “My best guess is a recession is coming.”
Summers explained his recession forecast: “I’m basing it on the fact that we don’t have a situation like we have now where inflation is over 4% and unemployment is over 4% without a recession in a year or two. So, I think probably in order to do what is necessary to stop inflation, the Fed will raise rates enough to tip the economy into recession.”
This isn’t the first time Biden has dismissed fears of a looming U.S. recession. In an interview with The Associated Press last week after the Fed announced its biggest rate hike since 1994, he argued:
First, it’s not inevitable. Second, we are better equipped to overcome this inflation than any country in the world.
Yellen expects U.S. economy to slow, but claims recession is not inevitable
Like Biden’s optimism about the U.S. economy is Treasury Secretary Janet Yellen. She told ABC News on Sunday that the recession that many Americans fear is “not at all imminent.”
“I expect the economy to slow down, with rapid economic growth, the labor market has recovered, and we’ve reached full employment. Now it’s natural for us to expect a transition to steady and steady growth,” Yellen said, emphasizing:
But I don’t think a recession is inevitable.
Nonetheless, the finance minister stressed: “It is clear that inflation is unacceptably high.”
Yellen also told The Times’ Dealbook DC policy forum earlier this month that “there’s no indication that a recession is brewing.”
What do you think of President Joe Biden and Treasury Secretary Janet Yellen’s comments about the U.S. recession? Let us know in the comments section below.
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