Here's what US President Joe Biden said about recession
"We're not going to have a recession," Biden told reporters. "My aim is that we transition from quick to sustainable growth," Biden said, noting that the US unemployment rate of 3.6 percent is historically low.
President Joe Biden stated that he does not expect the United States to experience an economic slowdown, despite the fact that GDP data coming later this week may show the economy contracting for the second straight quarter. "We're not going to have a recession," Biden told reporters.
"My aim is that we transition from quick to sustainable growth," Biden said, noting that the US unemployment rate of 3.6 per cent is historically low.
Despite good employment data, the president expressed optimism for a "smooth landing" in which "we transition from this rapid growth to sustainable growth." Several US officials have dismissed mounting recession worries, claiming that a slowdown in the world's largest economy is improbable due to extremely tight labour markets.
Recent data show that GDP fell in the second quarter, following a 1.6 percent drop in the first three months of the year, although forecasters continue to predict small increase. The first-quarter contraction was worse than predicted, and it was the first since the pandemic's peak in 2020.
Administration officials argue that the current economic picture is complicated, with global supply shocks and fluctuating commodity prices offset by a robust labour market.
Meanwhile, the economy is bracing for the Federal Reserve to make its next step to combat inflation on Wednesday, most likely by raising interest rates by three-quarters of a percentage point to dampen demand. Following a fast economic rebound last year, Biden's favour ratings have fallen in recent months as American people struggle to make ends meet amid rising inflation.