D.C., Jan. 5 (Reuters) – After a challenging few years, President Joe Biden said on Thursday that the American economy was showing “very bright spots” and was on its way to a “new plateau,” the steadier, slower growth that White House officials anticipate.
The Biden administration believes that a U.S. recession is unlikely in 2023, in part because of federal expenditure, despite recent warnings from investors, numerous economists, and some CEOs.
Prior to a private meeting, Biden told members of his Cabinet that he anticipates $3.5 trillion in manufacturing and technology investments from the public and private sectors over the following ten years, bolstering the American economy and improving prospects for both businesses and employees.
“Getting to a level location is not the goal here. The goal here is to reach a whole new plateau “The President of the Democratic Party remarked. We are the only nation in the world to have recovered from the crisis stronger than before.
However, Biden emphasized that it would be crucial to implement the hundreds of billions of dollars in federal spending contained in three important signature laws passed last year. He did this by citing recent data showing reduced inflation, strong GDP, and a stable labor market.
An Atlanta Fed model predicts that the U.S. economy would expand by 3.8% in the fourth quarter of 2022, despite the Consumer Price Index increasing by 0.1% in November.
“That does not imply that it is over. It indicates that things are going pretty darn well so far “said he. I simply don’t want to fool us into believing that we can let up on the gas pedal.
In his optimism, Biden is not alone.
According to Kristalina Georgieva, the chief of the International Monetary Fund, the United States may avoid a complete recession that might affect a third of the world’s economies. View More
James Bullard, president of the St. Louis Federal Reserve, stated on Thursday that the likelihood of a U.S. recession has decreased recently.
Even so, the United States’ chances of avoiding a recession are still expected to be slim. For instance, the Federal Reserve projects a 0.5% increase in 2023.
While addressing the Cabinet, Biden also praised efforts being made by the U.S. Federal Trade Commission, which upholds antitrust laws, to prohibit businesses from requiring employees to sign noncompete and certain training repayment agreements. These agreements prevent employees from leaving for better employment. View More
The bottom line is that, in my opinion, our economic vision is effective, and we’re moving forward after putting the first parts into practice, he said.
Biden’s upbeat remarks came as Wall Street’s major indexes closed more than 1% lower, squelching investors’ hopes that the Federal Reserve would soon stop its rate hike cycle due to evidence of a tight labor market.