Rep. Carter to Newsmax: Americans Know There's a Recession

The White House can try to change the definition of recession, but the United States is in one and people know it, Rep. Buddy Carter told Newsmax on Thursday.

"We are in a recession, folks, and you can try to change the definition if you will, but we are in a recession and people know that and they feel bad," the Georgia Republican said on Newsmax's "Wake Up America," adding that he is not surprised by the morning's news that the economy has shrunk for the second quarter in a row, dropping by 0.9%, and marking a strong indicator of a recession.

"There was talk that maybe it would not go down," said Carter. "What will surprise me is if the White House doesn't try to change the definition of a recession now and say, 'No, we're not in a recession, folks.' We're in a recession. We've got to face up to it."

This past weekend, Treasury Secretary Janet Yellen said the nation is not yet in a recession, pointing to a "very strong labor market" and rejecting the traditional definition of a recession as occurring when there have been two negative quarters of GDP growth.

President Joe Biden also this week said that the country is not in a recession, "God willing."

Carter called for a stop to excessive government spending and the "insanity that's going on in the Senate, that wants to raise taxes right now."

"This administration, that Democrat majority party, they've already killed your budget," Carter said. "Now they want to kill your job, and that's what they're trying to do with this tax hike that they're considering. We have got to stop this. Stop the spending, unleash American energy, and stop the regulations. That's what's going to get us out of this mess."

Carter said the combined rate hikes by the Federal Reserve have had a huge impact on the national budget and the interest on its debt.

"These increases have cost us over $50 billion in interest on our debt just by the Federal Reserve increasing the interest rate," said Carter. "If that's what it's costing the federal government, what's it doing to our economy? It's killing our economy."

The Federal Reserve, he acknowledged, had "no other choice" than to raise the interest rates, but at the same time, that means mortgages will be more expensive.

"This is causing a slowdown in our economy, and I would submit to you, almost a recession," said Carter.

Federal Reserve Chairman Jerome Powell on Wednesday said he does not think the United States is in a recession, as there are several areas of the economy that are doing well, but Carter disagreed.

"I wish they would let me know what those areas are," he said. "Look at what happened to Walmart. Their stock price went down. People aren't buying things now, and they're having to decrease the price of clothing because they're not selling. That's because people are having to put more money into the essentials into the things that they have to have – food and drugs and energy."

• Wall Street Points Down, Ahead of GDP Report
• Wall St Ends Sharply Higher After Rate Hike, Powell Remarks