Home Economy Biden press secretary loses temper during US recession dispute

Biden press secretary loses temper during US recession dispute

Press Secretary of the President of the United States Karine Jean-Pierre began to argue with a journalist and tried to lie about the economic situation in the United States. An excerpt from her speech was published on 27 July in Twitter account RNC Research.

During a briefing at the White House, a journalist asked Jean-Pierre a question about the words of the head of the National Economic Council, Brian Deese. The correspondent pointed out that in 2008 Dees claimed that “two quarters of negative GDP growth” was an accurate description of the economic downturn. However, on July 26, 2022, Dees said that this is not the technical definition of a recession. The journalist pointed out this contradiction and asked Jean-Pierre to explain it.

“If things are going so great, then why are White House officials trying to redefine recession? We all know that a recession is two consecutive quarters of negative growth in gross domestic product,” the journalist said.

The official representative of the White House tried to avoid answering the reporter’s question.

“Because it’s not a definition. <…> I can talk about what he said yesterday in front of all of you. <…> There are many factors, economic factors and indicators that should be taken into account. And I will say that the textbook definition of a recession is not two negative quarters in GDP, ”Jean-Pierre replied with an annoyed look.

On July 27, the US Federal Reserve System (FRS) raised the base interest rate on federal loans by 75 basis points (bp) to 2.25-2.5% per annum for the second time in a row. This was the latest step in the Fed’s efforts to bring down the country’s highest rate of inflation in 40 years.

On the same day, Fed Chairman Jerome Powell said he did not believe in a recession, since the Central Bank had made every effort to stop it. Investors fear that it is the Fed’s rate hike campaign that could lead the economy into recession. But Powell assured the central bank would be closely monitoring economic data to determine future moves. He conceded that another big raise might be needed, but there would also come a point when the Fed would slow down the rate of increase.

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