Biden says he does not suppose there will probably be an financial recession

U.S. President Joe Biden arrives to address the Volvo Group’s powertrain manufacturing facility in Hagerstown, Maryland on Friday, October 7, 2022.

Craig Hudson | Bloomberg | Getty Images

President Joe Biden said he doesn’t think a recession will happen anytime soon and if it does, he expects a “mild” economic slump.

“Every six months they say that. Every six months they look at the next six months and say what’s going to happen,” Biden said in an interview with Jake Tapper on CNN that aired Tuesday, referring to the latest economic forecasts of the major US banks.

“It hadn’t happened yet. It hadn’t… I don’t think there’s going to be a recession. If there is, it’s going to be a very mild recession. That means we’re going to move slightly down.”

JPMorgan Chase CEO Jamie Dimon warned Monday of the likelihood of a recession in six to nine months.

In an interview with CNBC, Dimon warned of a “very, very serious” headwind that could plunge the US and global economy into recession by the middle of next year.

The concern comes as the Federal Reserve continues to aggressively raise interest rates in a bid to reduce inflation. In September, the US Federal Reserve raised interest rates by three-quarters of a percentage point – the Fed’s third rate hike in a row.

Biden didn’t fully discount the odds of a recession, but told CNN the odds are slim.

“It’s possible,” Biden said. “I don’t expect it.”

The president acknowledged that the US has “real problems” but credited legislation passed under his administration, such as the Inflation Reduction Act, for putting the United States “in a better position, economically and politically, than any other major country in the world.” offset.