Biden: Biden says the US ‘will not be in a recession’

president Joe Biden On Monday, he said he did not expect the United States to suffer an economic slowdown, although gross domestic product figures due later this week could show the economy has contracted for the second consecutive quarter.

“We will not be in Recession In my opinion,” Biden to reporters.

Citing strong employment numbers, the president said he hopes instead for a soft landing as “we move from this rapid growth to steady growth.”

Several US officials have downplayed fears of a growing recession, saying a downturn in the world’s largest economy is unlikely given extremely tight labor markets.

Recent figures suggest gross domestic product may have fallen in the second quarter, after a 1.6 percent decline in the first three months of the year, but consensus expectations among economists still call for slight growth.

The contraction in the first quarter was worse than expected and the first since 2020 when the pandemic was at its worst.

The economy, meanwhile, is preparing for Federal Reserve to take the next step to fight inflation on Wednesday, likely by raising interest rates by another three-quarters of a percentage point in an effort to slow demand.

Federal Reserve Chairman Jerome Powell said it was “necessary” to bring down inflation, but stressed that the goal was to do so without disrupting the US economy.

After a quick economic recovery last year, Biden has seen his approval rates drop sharply in recent months as American families struggle to make ends meet amid rising inflation.


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