Biden: ‘Slight’ recession possible, not inevitable
President Biden speaks to reporters before leaving the White House for Florida to survey damage from Hurricane Ian with first lady Jill Biden on Wednesday, October 5, 2022. (Greg Nash/The Hill)
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(The Hill) — President Joe Biden said Tuesday night that there is a possibility of a “slight recession,” while reiterating his stance that he doesn’t think there will be one at all in the U.S.
“No,” Biden said when asked by CNN’s Jake Tapper if Americans should prepare for a recession.
“It hadn’t happened yet,” the president added later. “There’s no guarantee that (there’s) going to be. I don’t think there will be a recession. If it is, it’ll be a very slight recession. That is, we’ll move down slightly.”
Biden argued that the U.S. is in a better position than any other major country economically while acknowledging that “we still have real problems.”
He said the American Rescue Plan, which was the COVID-19 relief package, as well as the Inflation Reduction Law, which was the Democrats’ sweeping climate and tax bill, have helped position the economy for success.
“I mean, there’s so much that’s been accomplished,” Biden said. The elements that bring on a recesson are “just not there … they’ve been predicting this off and on …”
Tapper noted, though, that Biden said a slight recession is possible.
“It is possible. Look, it’s possible. I don’t anticipate it,” Biden replied.
The president has said that a recession is not inevitable since June, when the Federal Reserve first raised interest rates. Fed officials have vowed not to let up fighting inflation, even if it means driving the economy toward a recession. The Fed plans to raise interest rates again before the end of the year.
Biden also argued in his interview with CNN that Democrats have something to run on in the upcoming midterm elections, criticizing Republicans by asking what their platform is.
“The first thing they said they’re going to do is get rid of the Inflation Reduction Act. And so what’s that do? They’re going to raise drug prices, raise medical costs again. Be sure that we’re going to no longer be able to have the ability to have tax credits for weatherizing your homes,” Biden said, noting provisions of the Inflation Reduction Act.