U.S. President Joe Biden said in an interview released late Tuesday that he did not think there would be a recession, but that if it happened it would only be "very slight."
"I don’t think there will be a recession," he told CNN.
"If it is, it’ll be a very slight recession. That is, we’ll move down slightly."
Dimon: Recession in 6-9 Months
JPMorgan Chase & Co. Chief Executive Jamie Dimon said Monday the United States and the global economy could tip into a recession by the middle of the next year, CNBC reported.
Runaway inflation, big interest rates hikes, the Russian invasion of Ukraine and the unknown effects of the Federal Reserve's quantitative tightenting policy are among the indicators of a potential recession, Dimon said.
"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," Dimon said in an interview with CNBC.
His comments come as the big U.S. banks are set to report their third-quarter earnings beginning on Friday. So far this year, the benchmark S&P 500 index has lost about 24%, with all three major U.S. indices trading in bear market territory.
A number of economists, Fortune 500 CEOs and leading Republicans have been warning of a recession. Speaking to Newsmax ahead of the Labor Department's Consumer Price Index report last month, former White House trade adviser Peter Navarro told Newsmax that the Biden administration will purposely induce a recession and keep wages down, in order to control inflation.
"The strategy here, folks," Navarro said in his "Eric Bolling The Balance" appearance, "the way Biden and the Fed are gonna control out-of-control inflation is induce a recession, and keep your wages down."
"There's some estimates that just came out," Navarro added, "that says it's gonna take two years to reduce inflation by 2%, and those two years the unemployment rate is gonna be close to 7%.."
IMF: Inflation to Last 2 Years
Central banks' fight against inflation may take another two years to play out, increasing unemployment and lowering living standards for many in the world, the International Monetary Fund's chief economist said Tuesday.
In an interview with Reuters, IMF economic counselor Pierre-Olivier Gourinchas said that broad "core" inflation pressures beyond energy and food prices will take time to bring down to central bank targets of about 2%.
"Our projection is that this will start coming down, but we will not be back to central bank targets in 2023," Gourinchas said of inflation. "We'll be closer to that in 2024."
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