US President Joe Biden arrives to talk on the Volvo Group powertrain manufacturing facility in Hagerstown, Maryland, on Friday, Oct. 7, 2022.
Craig Hudson | Bloomberg | Getty Images
President Joe Biden said he doesn’t consider there will probably be a recession within the near future and if there’s, he expects it to be a “slight” economic dip.
“Every six months they are saying this. Every six months, they appear down the following six months and say what is going on to occur,” Biden said in an interview with Jake Tapper on CNN that was aired Tuesday, referring to recent economic projections by major U.S. banks.
“It hadn’t happened yet. It hadn’t… I do not think there will probably be a recession. Whether it is, it’ll be a really slight recession. That’s, we’ll move down barely.”
JPMorgan Chase CEO Jamie Dimon on Monday warned of the likelihood of a recession in six to nine months.
In an interview with CNBC, Dimon warned of a “very, very serious” mixture of headwinds which could tip each the U.S. and global economy into recession by the center of next 12 months.
The concerns come because the Federal Reserve continues to boost rates of interest aggressively in an effort to scale back inflation. In September, the U.S. central bank raised benchmark rates of interest by three-quarters of a percentage point — it was the Fed’s third consecutive hike.
Biden didn’t fully discount the chances of a recession but told CNN the chances were low.
“It’s possible,” Biden said. “I do not anticipate it.”
The president acknowledged the U.S. has “real problems” but credited laws passed under his administration just like the Inflation Reduction Act with putting the US in “a greater position than some other major country on this planet economically and politically.”