The diplomat drew attention to the fact that the White House refuses to call the current state of the US economy a recession. She noted that the country’s leadership is deliberately replacing concepts, as happened in previous crises, when politicians stopped using the words “depression” and “panic”.
“The same, apparently, was decided this time: they took and canceled the word “recession”. By the way, the concept of “recession” was put into circulation at the end of the 30s of the twentieth century, when the States were experiencing another severe depression. But the public conspiracy of politicians, political scientists and financiers with industrialists decided: to remove the word “depression” from circulation and introduce a lightweight term “recession”. The old trick was simply taken out of the chest and shown again, ”said Zakharova.
According to her, the American establishment has also begun to mask problems in the economy with such terms as “Putin’s tax” and “Putin’s prices.” She jokingly suggested that the White House also use the terms “external recession” or “recessionary intervention of the Kremlin.”
The day before, US presidential press secretary Karine Jean-Pierre argued with a journalist about the definition of a recession. She refused to consider as such two consecutive quarters of negative GDP growth.
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.