- In an interview with CNN’s Jake Tapper, President Joe Biden spoke about recession possibilities.
- Biden said that he doesn’t think there will be a recession, but if there is one it’ll be “slight.”
- He also pointed to recent legislative wins, like the Inflation Reduction Act which targets healthcare costs.
President Joe Biden isn’t very worried about a recession, even as some alarm bells sound.
In an interview with CNN’s Jake Tapper, Tapper asked Biden if the American people should prepare for a recession. Biden’s answer: An emphatic “no.”
“I don’t think there will be a recession,” Biden said. “If it is, it’ll be a very slight recession. That is, we’ll move down slightly.”
Biden’s comments come as the International Monetary Fund warns that the global economy is headed towards a downturn that could wreck more havoc than initial expectations. Kristalina Georgieva, managing director at the IMF, said in a speech that there’s a “fundamental shift” in the world economy — and a “darkening global outlook” means that people on the ground will see their incomes and financial stability shrink.
“We’re in a better position than any other major country in the world, economically and politically,” Biden said. “We still have real problems, but look what we got done.” He pointed to the administration’s slew of legislative wins, including his first stimulus package and the recently passed Inflation Reduction Act, which will target the climate crisis and healthcare costs.
But major economic figures in the US are still sounding the alarm about a potential downturn. Former Treasury Secretary Larry Summers told Bloomberg that the economy’s probably “headed for a collision of some kind.” JPMorgan CEO Jamie Dimon said that soaring inflation and ongoing war are likely to “push the US into some kind of recession, six, nine months from now.” And CEOs are preparing for a recession.
So far, though, recession concerns from earlier in the year haven’t come to fruition. While some companies have cut back on staffing, the layoff rate is still near historic lows. Companies might be slowing their hiring, but workers still feel comfortable job hopping for a better deal. Biden pointed out that warning bells so far haven’t led to a downturn.
“Every six months they say this. Every six months they look down at the next six months and say ‘hey listen, it’s going to happen,'” Biden told Tapper. “It hasn’t happened yet.”
The US economy is doing well, based on the latest data on hiring and job growth. That’s good news for workers currently, but it could also mean a bigger sting next year. Inflation has stayed persistently high. That’s concerning for the Fed, who are likely to keep raising interest rates in hopes of tamping down inflation — and will likely raise unemployment simultaneously.
But when it comes to recession, “It is possible. Look, it’s possible,” Biden said. “I don’t anticipate it.”