Although many experts have warned about the looming recession, when President Joe Biden was asked to make a statement about the issue, he seemed to push back against the thought, claiming the reporter was making things up.
While walking on Rehoboth Beach in Delaware, the President was asked about another recession by a female reporter. Biden quickly answered, “The majority of them aren’t saying that. Come on, don’t make things up, okay? Now you sound like a Republican politician. I’m joking. That was a joke, but all kidding aside, I don’t think it is.”
President Biden might not think people aren’t talking about it, but the Wall Street Journal surveyed a group of economists about the issue. The report stated, “Forecasters have raised recession probability due to a number of factors: higher borrowing costs, a blistering pace of inflation, supply-chain problems and commodity-price shocks stemming from the war in Ukraine.” The Wall Street Journal added, “Mostly, however, they see dimming chances that a steeper path of rate increases by the Fed can cool inflation without inducing higher unemployment and an economic downturn.”
It wasn’t just the Wall Street Journal as CNBC noted, “The U.S. economic contraction to start the year was worse than expected as weak business and private investment failed to offset strong consumer spending, the Commerce Department reported Thursday. First-quarter GDP declined at a 1.5% annual pace, according to the second estimate from the Bureau of Economic Analysis. That was worse than the 1.3% Dow Jones estimate and a writedown from the initially reported 1.4%.”
Even JPMorgan Chase CEO Jamie Dimon warned, “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.”
Still, as companies like Tesla have paused all hiring and begin to lay workers off, preparing for the recession, President Biden was adamant that only a select few people believe another recession is looming and it is mostly just Republicans attacking his leadership.
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