Biden adviser on US falling into a recession: ‘There are always risks’
National Economic Council Director Brian Deese on Sunday recognized the risk of the U.S. falling into a recession amid rising prices and elevated inflation, but would not say if the country is headed in that direction.
Asked by co-anchor Dana Bash on CNN’s “State of the Union” if the U.S. is falling into a recession, Deese said “there are always risks,” but argued that the country is in a transition period and could see growth.
“Our economy is in a transition from what has been the strongest recovery in modern American history to what can be a period of more stable and resilient growth that works better for families,” Deese said.
The top White House economic adviser recognized that the economy is grappling with “serious global challenges,” but argued that the U.S. is better positioned than other countries to recover.
“There’s no doubt we face serious global challenges right now, inflation first and foremost among them, and it’s hitting families hard. But there’s also no doubt that the United States is in a better position than any other major country around the world to address inflation without giving up all the economic gains that we’ve had and that’s because of the strength of our recovery,” he added.
Pressed on if he is confident that the U.S. can avoid a recession, Deese again pointed to the transition the U.S. economy is undergoing and recognized the risk of entering a recession.
“There are always risks, but we feel very good about where the United States is, particularly when you look on a global landscape,” he said.
The conversation regarding the U.S. potentially dipping into an economic recession comes after the S&P 500 continued its now seven-week decline on Friday, marking a 20-percent fall since January. That change is in line with the definition of a bear market.
The Federal Reserve increased interest rates earlier this month in an effort to control inflation, which has been on the rise largely due to supply chain snafus and skyrocketing demand following pandemic shutdowns.
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