On Thursday, President Joe Biden said the U.S. economy was noticing “really bright spots” after a few rough years and was headed to a “new plateau,” a new term coined for the stable and steady growth White House officials see ahead.
The Biden administration believes a U.S. recession is unlikely in 2023, mainly because of federal expenditure, despite recent warnings from investors, numerous economists, and some CEOs.
Before a private meeting, Biden informed Cabinet members that he anticipates $3.5 trillion in public and private investments in manufacturing and technology over the following ten years, bolstering the American economy and improving prospects for American businesses and employees.
The Democratic president said, “This is not about getting to a level spot. This is about going to a whole new plateau. We’re the only country in the world who’s come out of the crisis stronger than we went in.“
Biden quoted recent data showing easing inflation, solid growth, and a rigid labor market but said it would be essential to implement federal spending of hundreds of billions of dollars in three key signature laws passed in the previous year.
According to an Atlanta Fed model, the U.S. economy is predicted to grow by 3.8% in the last quarter of 2022, while the Consumer Price Index surged by 0.1% in November.
“That doesn’t mean it’s all over. It means that we’re off to a pretty darned good start,” he said. “I just don’t want to get us suckered into thinking that we can sort of let up on the gas pedal.”
In his optimism, Biden is not alone.
Kristalina Georgieva, head of the International Monetary Fund, said on Sunday that the United States might avoid outright contraction that could hit a third of the world’s economies.
St. Louis Federal Reserve leader James Bullard briefed on Thursday that the risk of a U.S. recession has reduced in recent weeks.
Still, if the U.S. escapes a recession, it will mostly be by a narrow margin. For example, the Federal Reserve predicts 0.5% growth in 2023.
Biden also praised plans by the U.S. Federal Trade Commission, which imposes antitrust law, to forbid companies from requiring workers to sign non-compete and a few training reimbursement agreements that retain employees from quitting for better jobs while speaking to Cabinet members.
He said, “The bottom line is, I believe our economic vision is working, and we’re in the process of implementing the first pieces we’ve gotten done, and we’re going to move on.”
Biden’s positive remarks came as Wall Street’s major indexes closed more than 1% down, quashing investors’ hopes that the Federal Reserve would soon pause its rate hike cycle due to indications of a tight labor market.
- Published By Team Nation Press News