Biden Says "Recession Is Not Inevitable," Draws Line on Inflation Responsibility Debate

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] "First, a recession is not inevitable. Secondly, we are in a stronger position than any other country in the world to overcome inflation."

U.S. President Joe Biden recently drew a line against growing concerns about a recession. He also strongly refuted the so-called 'Biden responsibility theory' surrounding the highest inflation in the U.S. in 41 years.

In an interview with the Associated Press released on the 16th (local time), President Biden responded to economists' warnings that the U.S. might head toward a recession by saying, "A recession is not inevitable." He assessed that the U.S. is in a better position than any other country in the world to overcome inflation. The historically low unemployment rate of 3.6% and the relatively strong economic growth in the U.S. were cited as the reasons.

He also showed a somewhat defensive attitude toward the inflation responsibility theory. President Biden, denying that he is a wise guy, questioned, "If inflation is my fault, then why do other major countries in the world have even higher inflation than the U.S.?" The U.S. Consumer Price Index (CPI) inflation rate has recently remained in the worst 8% range in 41 years. Especially for President Biden, with the midterm elections coming up in November, the responsibility theory surrounding inflation in the U.S. has grown, causing his approval ratings to plunge to the lowest levels recently.

He rejected the Republican claim that large-scale budget spending during the COVID-19 pandemic to stimulate the economy caused inflation, calling it "bizarre" and saying there is "no evidence."

President Biden emphasized, "Have confidence," and said, "I am confident that the U.S. is in a better position than any other country in the world to exert influence in the second quarter of the 21st century. This is not an exaggeration but a fact."

However, he mentioned the pandemic, economic volatility, and the recent soaring gasoline prices causing financial burdens on households, saying, "People are really, really depressed." He added, "The demand for mental health services has surged in the U.S. because people have seen everything going wrong. Everything they expected has gone awry. But most of it is the result of the COVID-19 crisis."

President Biden's interview drew attention as it was released amid recent polls showing that a majority of American voters are dissatisfied with his job performance. According to a May poll by the AP and NORC Center for Public Affairs Research, only 39% of U.S. adults approved of President Biden's job performance, a figure lower than a month ago. Only 2 out of 10 respondents said the U.S. is heading in the right direction or that the economy is good.

On the day, President Biden emphasized the need for the U.S. to stand up to Russian President Vladimir Putin, who invaded Ukraine. Regarding the reason for imposing sanctions on Russia despite the impact on global food and energy markets, he answered, "I made the decision not as a politician thinking about elections, but as the Commander-in-Chief." He also pointed out that if the U.S. does not confront Russia, chaos could arise with Russia continuing to penetrate deeper into the European continent, China becoming bolder in occupying Taiwan, and North Korea's nuclear ambitions growing.

This content was produced with the assistance of AI translation services.