WASHINGTON—President Biden played down the likelihood of a recession during a television interview Tuesday, and said if there is one it would be “very slight.”
“I don’t think there will be a recession. If it is, it will be a very slight recession. That is, we’ll move down slightly,” Mr. Biden said during a CNN interview. He later said: “Look, it’s possible. I don’t anticipate it.”
Stocks fell Tuesday during a volatile day of trading, as worries rise about a recession. Investors have been struggling with the effects of decades-high inflation and the Federal Reserve’s attempts to tame it with higher interest rates.
JPMorgan Chase & Co. Chief Executive Office
said in an interview with CNBC Monday that he thinks the U.S. is heading for recession in the middle of next year, and that stocks have much further to fall.
“These are very, very serious things which I think are likely to push the U.S. and the world—I mean, Europe is already in recession—and they’re likely to put the U.S. in some kind of recession six to nine months from now,” Mr. Dimon said.
The International Monetary Fund warned Tuesday that global economic growth is likely to slow next year more than previously expected, due largely to inflation, Russia’s invasion of Ukraine and the slowdown in China.
The IMF left unchanged its 2023 U.S. growth projection at 1%, but scaled back its 2022 forecast. The economy will expand 1.6% this year, it said, down from its 2.3% estimate in July, and down significantly from 5.7% last year.
Mr. Biden argued in the CNN interview that the U.S. is in a “better position than any other major country in the world economically and politically,” adding, “we still have real problems.”
Mr. Biden cited legislation passed during his administration, including the recent healthcare, tax and climate law.
He disputed the idea that “there’s an automaticity to a recession.” And he said that families “have reason to be concerned about energy prices,” but also pointed to what he said his administration has done to help families squeezed by rising costs, arguing that the recent law would help reduce drug prices.
Write to Catherine Lucey at [email protected]
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