US President Joe Biden arrives to speak at the Volvo Group powertrain manufacturing facility in Hagerstown, Maryland, on Friday, Oct. 7, 2022.
Craig Hudson | Bloomberg | Getty Images
President Joe Biden said he doesn’t believe there will be a recession in the near future and if there is, he expects it to be a “slight” economic dip.
“Every six months they say this. Every six months, they look down the next six months and say what’s going to happen,” Biden said in an interview with Jake Tapper on CNN that was aired Tuesday, referring to recent economic projections by major U.S. banks.
“It hadn’t happened yet. It hadn’t… I don’t think there will be a recession. If it is, it’ll be a very slight recession. That is, we’ll move down slightly.”
JPMorgan Chase CEO Jamie Dimon on Monday warned of the likelihood of a recession in six to nine months.
In an interview with CNBC, Dimon warned of a “very, very serious” mix of headwinds which could tip both the U.S. and global economy into recession by the middle of next year.
The concerns come as the Federal Reserve continues to raise interest rates aggressively in an effort to reduce inflation. In September, the U.S. central bank raised benchmark interest rates by three-quarters of a percentage point — it was the Fed’s third consecutive hike.
Biden didn’t fully discount the odds of a recession but told CNN the odds were low.
“It’s possible,” Biden said. “I don’t anticipate it.”
The president acknowledged the U.S. has “real problems” but credited legislation passed under his administration like the Inflation Reduction Act with putting the United States in “a better position than any other major country in the world economically and politically.”