Bernstein: "Employment and Consumption Very Strong... Cannot Conclude Recession"

[Asia Economy New York=Special Correspondent Joselgina] Jared Bernstein, an economic advisor to U.S. President Joe Biden, stated that despite soaring inflation, recent employment and consumption are very strong, making it impossible to conclude that the economy is in a recession.

Jared Bernstein, a member of the White House Council of Economic Advisers (CEA), appeared on Fox News on the 17th (local time) and said, "Looking at wage and job growth, it is very difficult to conclude that we are in a recession." While expressing concerns about inflation, which is at its highest level in over 40 years, he added, "We also have a very strong tailwind pushing consumption upward."

Earlier, the U.S. Consumer Price Index (CPI) for June was released, showing a 9.1% increase, far exceeding market expectations. The second quarter Gross Domestic Product (GDP) is also expected to show negative growth for two consecutive quarters following the first quarter's -1.6%. This has negatively impacted President Biden's approval ratings.

However, Bernstein referred to recent indicators such as low unemployment and strong consumer spending, diagnosing that "this is not a denial of inflation concerns, but underneath it, there is an economy with a strong labor market."

On the same day, in an interview with CNN, Bernstein predicted that oil prices, which have fueled U.S. inflation, will decline by the end of this month. Earlier, President Biden expressed dissatisfaction shortly after the June CPI release, saying "the data is lagging" and that the recent decline in gasoline prices had not yet been reflected in the indicators. According to the American Automobile Association (AAA), the national average gasoline price at gas stations, which exceeded $5 per gallon last month, was recorded at $4.53 on this day.

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