US President Joe Biden relied on the country’s recent economic data this Thursday to defend the strength of the US economy and conclude: “This does not sound like a recession”.
(Also read: President Biden seeks to allay fears of recession in the US.)
Biden dedicated the last minutes of his speech on measures to tackle inflation to respond “with facts about the state of the economy” to the debate on whether the country has entered a period of recession after chaining the Gross Domestic Product two consecutive quarters of contraction, 0.2% between April and June.
He thus underlined the “record” employment data, with the creation of nine million jobs and an unemployment rate that is currently at 3.6%, and also spoke of the important investments that large companies have announced in the country .
(You may be interested in: What did the presidents of the USA and China, Joe Biden and Xi Jinping, talk about?)
Tune in as I deliver remarks on the economy and meet with CEOs to receive an update on economic conditions across key sectors and industries. https://t.co/oi7xJBQ7fb
— President Biden (@POTUS) July 28, 2022
He thus cited the investments of billions in semiconductors by technology companies such as Intel, Samsung and Texas Instruments, or in electric vehicles by Ford, General Motors, Hyundai and Tesla.
He also spoke of the law that is approved this Thursday in the House of Representatives to promote the manufacture of chips, and the investment that his Government will make to encourage alternative energies to reduce inflation – on which fuel prices weigh so heavily. .
(Also: Migration: Colombian couple dies while trying to reach the United States)
All to conclude that “this does not sound like a recession,” said the president just before leaving the room.
America is on the right track
In the morning, in a statement, Biden attributed the economic slowdown to the actions of the Federal Reserve to combat inflation and insisted that the United States is “on the right path” to come out of the pandemic stronger.
“After last year’s historic economic growth, and having brought back private sector jobs lost during the pandemic, it’s no surprise that the economy is slowing as the Federal Reserve moves to reduce inflation,” he said. note.
Treasury secretary statement
Treasury Secretary Janet Yellen, for her part, said that the US economy is experiencing an economic slowdown, something vital to reduce inflation, but not currently in recession.
“We see a significant slowdown in growth,” Yellen said Thursday at a news conference. But a true recession is a “widespread weakening of the economy,” she pointed out.
“That’s not what we’re seeing right now. Currently, the country is experiencing job creation, strong household finances, rising consumer spending and business growth,” Yellen said.
The Treasury chief spoke hours after data was released showing the US economy shrank for the second straight quarter as higher interest rates slowed business investment and housing demand.
“We need to see a slowdown,” Yellen said. “The labor market is extremely tight and may be the source of some inflationary pressure,” he said, while emphasizing the important role of food and energy costs and supply chain bottlenecks in rising cost of living.
Lowering inflation is one of the main priorities of the Administration, Yellen reiterated. The rise in consumer prices “will probably taper off in the next few days,” she added.
EFE and Bloomberg
More news
Blinken and Lavrov will speak for the first time since the start of the war in Ukraine
Will Caracas-Bogotá relations be restored? Foreign Minister of Petro visits Táchira
The UN enshrined a new universal right, what is it?
#Biden #knowing #GDP #data #sound #recession