A recession in the United States is not inevitable, President Joe Biden said Monday, while acknowledging the economic pain being experienced by Americans as inflation soars.
Speaking in Tokyo, Biden simply replied “no”, when asked if a US recession is inevitable.
“This is going to be a haul, this is going to take some time,” Biden said.
Speaking at a news conference on Monday in
Tokyo, Biden acknowledged that the American economy has “problems,” but said it was better positioned than other countries.
“We have problems that the rest of the world has,” Biden said, “but less consequential than the rest of the world has.”
The President promised “concrete benefits” would emerge from the new Indo-Pacific Economic Framework (IPEF) as he warned Americans worried about high inflation that it was “going to be a haul” before they feel relief.
This is going to be a haul. This is going to take some time,” he said even as he rejected the idea a recession in the US was inevitable.
The comments came just before Biden’s planned launch of the Indo-Pacific Economic Framework (IPEF), a new trade deal his administration designed to signal US dedication to the contested economic sphere and to address the need for stability in commerce after disruptions caused by the pandemic and Russia’s invasion of Ukraine.
Meeting with Kishida, Biden said the new framework would also increase US cooperation with other nations in the region.
The White House said the framework will help the United States and Asian economies work more closely on issues including supply chains, digital trade, clean energy, worker protections and anticorruption efforts. The details still need to be negotiated among the member countries, making it difficult for the administration to say how this agreement would fulfill the promise of helping US workers and businesses while also meeting global needs.
President Biden has been faced with high inflation since last year and Russia’s war in Ukraine, launched in late February, has caused further economic complications.
In April, consumer prices rose 8.3% from a year before, forcing Americans to have to pay more for gasoline, groceries and other expenses.
Even worse, concerns of a recession, which would likely come in 2023 according to some estimates, paint a new grim outlook for the U.S. economy.
The president and his economic team have insisted that the economy is in a good place to withstand setbacks, highlighting factors like a strong labor market and low unemployment rates.
“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,” National Economic Council Director Brian Deese said Sunday on CNN’s “State of the Union.”
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