Govt. Economists Fail To Say Recession Is Coming

The messaging seems to be clear among economists within the Biden administration: don’t say recession. They appear to be reluctant to say a recession is looming, despite warning the economy is likely to slow down.

Several of Biden’s economists were scattered around on several corporate news outlets, where they asserted inflation will likely “not come down to the Federal Reserve’s 2 percent target” and the US economy will “slow down” yet a recession is “not inevitable.”

President of the Cleveland Fed, Loretta Mester said she agreed with Fed Chairman Jerome Powell that the Central Bank cannot do much more than it already has done. Powell announced last week that the Fed is going to hike the interest rate by 75 basis points, which is 50 percent more than they originally planned.

Mester asserted, this will aim to moderate demand for goods and services, so that it can get back in balance with the supply side of the economy. However, she went on to blame external factors for high prices of gas, while pointing to the Russian invasion of Ukraine.