President Joe Biden said he does not think there will be a recession in the near future, and if there is, that it would only be “very slight.”
“Every six months they say this. Every six months, they look down the next six months and say what’s going to happen,” Biden said in an interview with CNN’s Jake Tapper, referring to recent economic projections by major U.S. banks.
“I don’t think there will be a recession,” Biden said to Tapper. “If it is, it’ll be a very slight recession. That is, we’ll move down slightly.”
While Biden does not anticipate a recession, some experts are sounding the alarm about the future of the American and global economies. Some investors, economists, and banks are all warning that the U.S. is likely to enter a recession in the coming months.
Stocks dipped on Monday after JPMorgan Chase CEO Jamie Dimon warned in an interview that the U.S. is likely to enter a recession within the next six to nine months.
Last month, 72 percent of economists surveyed by the National Association for Business Economics said they expected the next U.S. recession will begin by the middle of 2023 if it hasn’t already started.
This week, Bank of America said the Federal Reserve’s fight to lower inflation by aggressively hiking up interest rates will cause the economy to start losing tens of thousands of jobs a month.
Worries about inflation and the increased likelihood of even more massive interest rate hikes have been spooking Wall Street again and sending long-term bond yields higher.
Biden suggested that the United States’ ability so far to thwart a recession despite forecasts that raised broad concern gives him some confidence in the future of the economy. He also underscored his administration’s legislative accomplishments meant to help reduce costs, arguing that the U.S. is in a better position than any other major country in the world, both politically and economically.
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