Economists forecast recession, White House says US on track for steady economic growth

Economists forecast recession, White House says US on track for steady economic growth

Karine Jean-Pierre contradicted expert opinions at a press conference on 21 June. Since April, analysts have projected a decline by 2023, and forecast have turned even gloomier in recent days.

WORLD JUNE 22. 2022 15:26

The United States is headed for a recession, economists warn in their forecasts for the world’s largest economy. Deutsche Bank was the first to project in April that it is virtually inevitable for the US economy to fall into recession in 2023. Many Wall Street analysts have also downgraded their forecasts after the Federal Reserve raised interest rates by 75 basis points last week, in what was its biggest hike since 1994, Business Insider writes.

„More than two months ago, we forecast that the US economy would tip into a recession by end-2023,” said US economist Matthew Luzzetti, Deutsche Bank’s spokesman.

„Since that time, the Fed has undertaken a more aggressive hiking path, financial conditions have tightened sharply, and economic data are beginning to show clear signs of slowing,”

Mr Luzzetti highlighted, adding that

„in response to these developments, we now expect an earlier and somewhat more severe recession.”

Analysts predict that as the US economy will slow down, unemployment will pick up sharply from the current 3.6-per-cent level and is expected to peak at 5.5 per cent in 2024, Business Insider points out.

White House press secretary Karine Jean-Pierre believes the situation is not that serious. Responding to a reporter’s questions on 21 June, she said that the United States is actually on pace towards steady economic growth, not a recession, postmillennial.com writes.

„Right now, we don’t see a recession…We’re not in a recession right now,”

Jean-Pierre said standing behind the podium.

„We’re in a transition where we are going to go into a place of stable and steady growth,”

she claimed, despite reports stating otherwise.

Karine Jean-Pierre, who was appointed white house press secretary early May, has already been an awkward position at a similar press event. Not long ago, reporters wanted to know how the Biden administration was dealing with the baby formula shortage until supplies are restored. Karine Jean-Pierre began to browse through her massive binder when the journalist was still speaking, but couldn’t find a pre-written answer. After an awkward silence and some desperate flipping, it turned out that the press secretary had not received any answers to that question, which she told the press in her embarrassment.

Donald Trump Jr, the former president’s son also commented on the spokeswoman’s words related to the economy on social media. Trump Jr. simply asked:

WORLD

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deutsche bank, prediction, press secretary, recession, usa