As the dark clouds of the economic downturn linger, US President Biden said on Thursday (5) that after a tough few years in the US, some bright spots can already be seen and he is heading for a “new plateau,” using new vocabulary to describe White House officials The perception of a more stable and slower future economic growth.
Although many investors, economists and business executives recently warned that the US economy will enter a recession this year, the Biden administration still believes that is unlikely to happen, in part due to the federal spending injection.
“The US economy is not headed for a certain level, but it is about to enter a ‘whole new plateau. ‘ We are the only country in the world stronger than we were before the crisis,” Biden told a cabinet meeting.
He cited recent economic data to illustrate that US inflation has slowed, economic growth is robust and the job market is resilient, but implementation of three key laws passed last year is crucial.
Biden thinks this is a good start for the US economy, but I hope everyone doesn’t mistakenly think they can relax a bit.
According to the model of the Federal Reserve Bank of Atlanta, the US economy is expected to grow by 3.8% in the fourth quarter of 2022 and the consumer price index (CPI) in November 2022 is expected to increase by 0.1% monthly.
Biden isn’t alone in his optimism: Federal Reserve Bank of St. Louis Chairman James Bullard, a big Fed hawk, said Thursday that the risk of a U.S. recession has diminished in recent weeks. Kristina Goergieva, managing director of the International Monetary Fund (IMF), said on Sunday that a third of the world’s economies could fall into recession this year, but the United States may be able to avoid a full-blown recession.
But the US may only narrowly avoid a recession, with the US economy expected to grow 0.5% this year, according to the Federal Reserve.
In another cabinet meeting, Biden praised the US Federal Trade Commission’s (FTC) latest policy: prohibiting companies from requiring employees to sign non-compete clauses or signing certain training reimbursement agreements that prevent employees from find better jobs.
Biden to participate in private meeting after speaking with cabinet members on public and private investments of $3.5 trillion in manufacturing and technology over the next decade to strengthen the US economy and improve the future of businesses and US workers
