“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.
“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.