WASHINGTON: President Joe Biden stated Monday he doesn’t anticipate the United States undergo an financial downturn, though GDP figures due later this week could present the economic system shrinking for a second consecutive quarter.
“We’re not going to be in a recession for my part,” Biden advised reporters.
Citing robust employment figures, the president stated he hoped as an alternative for a smooth touchdown the place “we go from this speedy progress to regular progress.”
A number of US officers have downplayed rising recession fears, saying a downturn on the planet’s largest economic system is unlikely given the very tight labor markets.
Current figures recommend GDP might need fallen within the second quarter, following a 1.6 p.c decline within the first three months of the 12 months, however the consensus forecast amongst economists nonetheless requires slight progress.
The primary-quarter contraction was worse than anticipated and the primary since 2020 when the pandemic was at its worst.
The economic system, in the meantime, is bracing for the Federal Reserve to make its subsequent transfer to battle inflation on Wednesday, possible by rising rates of interest by one other three-quarters of a proportion level in an effort to sluggish demand.
Fed Chair Jerome Powell has stated it’s “important” to decrease inflation, however harassed that the objective is to realize that with out derailing the US economic system.
After a speedy financial restoration final 12 months, Biden has seen his approval scores plummet in latest months as American households have struggled to make ends meet amid surging inflation.
“We’re not going to be in a recession for my part,” Biden advised reporters.
Citing robust employment figures, the president stated he hoped as an alternative for a smooth touchdown the place “we go from this speedy progress to regular progress.”
A number of US officers have downplayed rising recession fears, saying a downturn on the planet’s largest economic system is unlikely given the very tight labor markets.
Current figures recommend GDP might need fallen within the second quarter, following a 1.6 p.c decline within the first three months of the 12 months, however the consensus forecast amongst economists nonetheless requires slight progress.
The primary-quarter contraction was worse than anticipated and the primary since 2020 when the pandemic was at its worst.
The economic system, in the meantime, is bracing for the Federal Reserve to make its subsequent transfer to battle inflation on Wednesday, possible by rising rates of interest by one other three-quarters of a proportion level in an effort to sluggish demand.
Fed Chair Jerome Powell has stated it’s “important” to decrease inflation, however harassed that the objective is to realize that with out derailing the US economic system.
After a speedy financial restoration final 12 months, Biden has seen his approval scores plummet in latest months as American households have struggled to make ends meet amid surging inflation.