Biden says ‘We’re not going to be in a recession’ [Video]

WHAT YOU NEED TO KNOW:

• President Joe Biden on Monday said he does not think the United States will experience a recession.
• The Biden administration in recent days also pushed back in admitting the country is in a recession.
• The Commerce Department will soon release the GDP numbers from April to June.

Ahead of the November midterm elections, the economy is the top driver for many voters who will decide whether the Democratic Party keeps control of Congress.

President Joe Biden on Monday said he does not think the United States will experience a recession. The statement comes ahead of the release of gross domestic product (GDP) numbers and despite record-high inflation that’s showing no signs of easing up.

“We’re not going to be in a recession, in my view,” he said. “The unemployment rate is still one of the lowest we’ve had in history. It’s in the 3.6% area. We still find ourselves with people investing.”

“My hope is we go from this rapid growth to a steady growth, so we’ll see some coming down. God willing, I don’t think we’re going to see a recession,” Biden added.

White House officials in recent days also pushed back in admitting the country is in a recession. The Biden administration has argued that even if the GDP shrank, the economy was almost certainly not in a recession in the first half of 2022.

On Sunday, Treasury Secretary Janet Yellen acknowledged that the U.S. economy is slowing down, but opposed the idea the country has entered a recession, even noting that many of the traditional signs of recession are not evident.

The Commerce Department on Thursday will release its initial estimate of second-quarter growth from April to June. If the numbers show that GDP has fallen again, the country would be in the ‘colloquial’ or familiar definition of a recession.

The U.S. economy contracted at a 1.4% annual rate, marking the first time it shrank since the onset of the pandemic in early 2020.

Considering other definitions of a recession, the White House Council of Economic Advisers asserted that other economic indicators, including employment, inflation-adjusted consumer spending and industrial production, do not indicate a recession

Even CNN doesn’t agree with the Biden administration’s statements. A panel on CNN criticized the White House on Monday for trying to change the definition of a recession as incoming GDP numbers may signal an economic downturn. 

Source: Reuters