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A recession is ‘not inevitable,’ Biden administration officials say

Deese’s message echoed what Biden stated in a sit-down interview with the Associated Press final week, the place he acknowledged that Americans are “really, really down” after years of a pandemic, a unstable financial system and now record-high costs on the fuel pump. Both Energy Secretary Jennifer Granholm and Treasury Secretary Janet Yellen used the identical language in separate interviews on Sunday.

“I expect the economy to slow. It’s been growing at a very rapid rate as the economy, as the labor market is recovered and we reached full employment. It’s natural now that we expect to transition to steady and stable growth. I don’t think recession is at all inevitable,” Yellen stated on ABC’s “This Week.”

“Clearly, inflation is unacceptably high, it’s President Biden’s top priority to bring it down. And Chair Powell has said that his goal is to bring inflation down while maintaining a strong labor market. That’s going to take skill and luck, but I believe it’s possible. I don’t think a recession is inevitable,” she stated, referring to Federal Reserve Chair Jerome Powell.

The Fed took aggressive action last week to handle skyrocketing costs, launching its largest rate of interest improve in almost three a long time. While the transfer appeared aimed toward reassuring the general public, there are considerations that the central financial institution may trigger a recession because it tries to convey down inflation.

Former Treasury Secretary Larry Summers, who has been a thorn in the administration’s side with regards to his assessments in regards to the White House’s financial coverage, stated Sunday that each one the “precedents point towards a recession.”

Speaking on NBC’s “Meet the Press,” Summers stated it’s probably that by the “end of next year, we would be seeing a recession in the American economy.”

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