U.S. not preparing for recession – White House says U.S. economy is strong

White House Chief of Staff Ron Klain says the United States is not in a recession. “The economy is growing. It is strong“, he stressed. In addition, White House press secretary Karine Jean-Pierre said that there are no meetings or anything that is preparing for a recession.

White House dismisses recession fears

White House Chief of Staff Ron Klain, President Joe Biden’s top aide, shared his economic outlook in an interview with MSNBC on Thursday. He stated:

We’re not in a recession… Unemployment claims remain at historic lows… The economy is growing. It’s strong. It’s creating jobs.

His statement echoes what Joe Biden said last month, when he noted that the U.S. economy is “strong as hell“.

In addition, White House spokeswoman Karine Jean-Pierre said in a television interview with the media that the White House is not preparing for a recession:

There’s no meeting or anything going on to prepare for a recession because … look, what we’re seeing right now is a strong labor market.

The press secretary was then asked, as he traveled to Albuquerque, New Mexico, with President Joe Biden on Friday, if it was unwise for the administration not to prepare for a recession, given that the bond market is forecasting a 48 percent chance of a recession over the next year, according to Evercore ISI.

“Look, I just want to be very clear here“, she replied. “It’s not just us saying that, I’m just stating it. Because it’s not just us in the administration, it’s other economists who are saying that the strength of our labor market is just not compatible – it’s really not compatible – with a recession or even a pre-recession. We think our economy is incredibly resilient, as we’ve seen under this administration, because of the work that this president has done, because of his economic policies.“

While top U.S. officials continue to downplay recession fears, a recent poll showed that 98% of business leaders are already preparing for a recession in the United States. The Biden administration has also been accused of trying to redefine what a recession is.

A growing number of economists have warned of a severe recession as the Federal Reserve continues to raise interest rates to fight inflation. JPMorgan CEO Jamie Dimon said the U.S. economy could enter a recession within six to nine months. However, he pointed to several factors that are “far more worrisome“. Tesla CEO and Twitter boss Elon Musk believes the U.S. recession could last until spring 2024, while veteran investor Jim Rogers expects it to be the worst recession in his lifetime.