Joe Biden dismisses Recession rumors: Expects “very slight” economic dip

Sahana Kiran
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Source: Poynter

The US government has been dealing with high inflation rates for quite some time now. While the country’s central bank, the Federal Reserve remains optimistic about fending off high inflation, arguments for a recession have been taking the front stage. Putting a rest to all the fear and uncertainty around the same, US President Joe Biden negated the occurrence of a significant economic downturn.

Speaking to CNN in a recent interview, Biden suggested that he believed that there wouldn’t be a recession. However, even if there is, a “very slight recession” could be expected.

Earlier this week, Jamie Dimon, the CEO of JPMorgan Chase alerted the community by highlighting the possibility of a recession. Dimon noted that there would be a recession in six to nine months. Joe Biden, however, suggested otherwise. Addressing the same, Biden said,

“Every six months they say this. Every six months, they look down the next six months and say what’s going to happen.”

The President strongly believed that if a recession hasn’t occurred yet, the chances of it taking place were low. He added,

“It hadn’t happened yet. It hadn’t… 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.”

Odds of a recession are low but not zero

Apart from Dimon, an array of individuals including the head of US economics at the Bank of America noted how a recession could tick off in the first half of next year. In addition to this, the Bank of America announced that the unemployment rate is expected to surge to 5 percent or even 5.5. percent over the next year. With all of this in play, the community fears the wrath of recession.

While Joe Biden’s latest comments brought about some respite, he did not entirely negate the possibility of a recession. He noted that “it’s possible” but “I don’t anticipate it.”