The US government has faced a tremendous strain on its economy during the past few months. The whole world was convinced that the US was about to enter a recession due to high inflation and interest rates. Executives from notable banking behemoths proposed this idea. Elon Musk recently replied to a tweet stating that he believes the recession can last till 2024.
However, Joe Biden is of the opinion that there is no chance of a recession. He stated that even if it happens, it will be a very slight one. In one of the recent comments, Joe Biden’s top economic advisor, Brian Deese, stated that the US is sturdy enough to tackle a recession. The comments come at a time when concerns regarding the recession are rising around the country and in global nations.
Biden government is strong in its view on recession
Even though the worries regarding a recession are rising, the Biden administration doesn’t agree with the masses. Deese believes the country will have a soft landing and will slowly cut down on job growth instead of a deep contraction and mass layoffs.
“If we look at where the United States are, two things are clear. One is that we have a degree of strength and resilience in the labor market and household balance sheets and in business investment. That is continuing to move our economy forward, and that’s really important,” Deese stated.
Deese also added that the US is in a better position than any other country to sail through this tough phase without giving up the gains.
The monthly growth in jobs has averaged around 420,000 this year. However, it was 562,000 a month in 2021. In one of the reports by WSJ, it was also stated that the FED is likely to raise interest rates by 0.75% by December. Global nations are doing their best to bring the economy to stability. This is in fear of a recession that is likely to happen and has already happened in some nations.