June 21, 2022

Biden Denies Likely Recession Despite Evidence

  • Executive

In Brief: 
On Monday while out for a walk in Delaware, Biden was asked by a female reporter about a possible upcoming recession. "Economists are saying that a recession is more likely than ever," the reporter stated to Biden in a clip posted by Fox News. Instead of addressing her concerns, Biden replied, “The majority of them aren’t saying that. Come on, don’t make things up, okay?” He then added, “Now you sound like a Republican politician,” before claiming that his reply was a joke. 

The Background:
The reporter's question was in response to the Wall Street Journal survey of a group of economists who reported on Sunday that the odds of the U.S.nation entering a recession in the next 12 months rank at 44%. 

President Biden continued, "But all kidding aside, no I don't think it is. I was talking to Larry Summers this morning, there's nothing inevitable about a recession." 

Yet that is a very different song than that sung by Larry Summers on NBC. "My best guess is that a recession is ahead.,” he stated. “I base that on the fact that we haven't had a situation like the present with inflation above 4% and unemployment beyond 4% without a recession following within a year or two. And so I think the likelihood is that in order to do what's necessary to stop inflation, the Fed is going to raise interest rates enough that the economy will slip into a recession.,"

Inflation rose 8.6% in May, hitting a new 40-year high. The national average price per gallon has stayed above $5 a gallon.


Notable Quotes:
“That hurricane is right out there, down the road, coming our way. We just don’t know if it is a minor one, or Superstorm Sandy, or Andrew, or something like that. And you better brace yourself,” JPMorgan Chase CEO Jamie Dimon, NPR.
 

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