The White House said Thursday that data does not indicate a US recession is on the horizon, rebuffing Federal Reserve staff economists who forecast a minor contraction starting later this year.
White House Press Secretary Karine Jean-Pierre said job numbers and consumer spending are strong and chalked it up to President Joe Biden’s economic plans, waving off a recession risk.
“We’re seeing the success of his plans, and recent economic indicators are not consistent with a recession or even a pre-recession,” Jean-Pierre said Thursday when asked about the Fed forecast.
Federal Reserve minutes published Wednesday indicated that “the staff’s projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years.”
Still, Fed officials appear on track to extend their run of interest-rate hikes, shrugging off the warning.
Jean-Pierre pointed to job gains, the unemployment rate and consumer spending as indicators. She also said that inflation has been falling, though it remains well above target and may spur more Fed hikes, raising the chance of a recession. Still, the spokeswoman contradicted the warning of the Fed staff.
“Those are the indicators that show us that we are not headed to a recession or a pre-recession,” she said.
Former Fed Vice Chair Lael Brainard left the bank in February to take a role as director of Biden’s National Economic Council. Biden’s administration has regularly batted away public predictions of a recession, and the president himself as chafed at those forecasts as he prepares to announce an expected reelection bid.
This article was provided by Bloomberg News.