Politico reports 'recession talk surges' from Washington to Wall Street despite Biden's reassurances

“From Wall Street to Washington, whispers about a coming economic slump have risen to nearly a roar as the Federal Reserve ramps up its battle against the highest inflation in four decades,” economics reporter Victoria Guida wrote in “No More Whispers: Recession Talk Surges in Washington.” 

Many in finance and the media have warned about a potential recession for months, with Bloomberg publishing a piece in May arguing that the Federal Reserve likely expected a recession back then. 

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President Biden speaks about inflation and supply chain issues at the Port of Los Angeles, Friday, June 10, 2022, in Los Angeles. 

President Biden speaks about inflation and supply chain issues at the Port of Los Angeles, Friday, June 10, 2022, in Los Angeles.  ((AP Photo/Damian Dovarganes))

“Fed Chair Jerome Powell has begun saying the quiet part out loud,” Guida wrote. “The central bank is willing to tolerate a recession if it means getting inflation under control.”

“While Biden has publicly backed Powell’s efforts, raising expectations of a recession are compounding the administration’s economic woes as Democrats head into congressional elections this year,” she continued. 

President Biden has stated publicly that a recession is not inevitable. “There’s nothing inevitable about a recession,” Biden said when asked by a reporter last month. “Don’t make things up,” he told the reporter. 

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WASHINGTON - JANUARY 22:  The Federal Reserve building is seen January 22, 2008 in Washington, DC. (Photo by Chip Somodevilla/Getty Images)

WASHINGTON – JANUARY 22:  The Federal Reserve building is seen January 22, 2008 in Washington, DC. (Photo by Chip Somodevilla/Getty Images)

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