Biden ‘not concerned’ about recession after US economy shrinks in first quarter of 2022

President Biden on Thursday stated he’s “not involved” a couple of recession within the rapid future, simply hours after the Commerce Division introduced that the U.S. economic system shrank 1.4% originally of 2022 — marking the worst quarter in two years.

Gross home product (GDP), the broadest measure of products and providers produced throughout the economic system, shrank by 1.4% on an annualized foundation within the three-month interval from January by way of March, the Commerce Division stated in its first studying of the info on Thursday. 

US ECONOMY SHRANK 1.4% AT BEGINNING OF 2022, MARKING WORST QUARTER IN 2 YEARS

Refinitiv economists anticipated the report to point out the economic system had expanded by 1.1%. It marked the worst efficiency for the reason that spring of 2020, when the U.S. economic system was nonetheless deep within the throes of the COVID-induced recession.

When requested about how involved he’s concerning the prospect of a recession given the GDP report, the president stated he’s not.

“Properly, I am not involved about recession,” Biden stated. “And I imply, you are at all times involved a couple of recession, however the GDP, fell to 1.4%.”

“However, right here’s the deal,” Biden continued. “We additionally had final quarter client spending and enterprise funding and residential funding elevated at vital charges, each for leisure in addition to exhausting merchandise.”

The president additionally stated unemployment is at its “lowest price since 1970,” and stated “a document 4.5 million companies had been created final 12 months.”

“We’re in a state of affairs the place we’ve got a really completely different view than Senator Scott of Republicans that need to elevate taxes on the center class households and need to embrace half of small enterprise homeowners,” Biden stated.

President Joe Biden indicators the American Rescue Plan, a coronavirus reduction bundle, within the Oval Workplace of the White Home, March 11, 2021, in Washington. ((AP Photograph/Andrew Harnik, File) / AP Newsroom)

The president was referring to a tax plan rolled out by Sen. Rick Scott, R-Fla., which the adviser stated would “improve taxes on thousands and thousands of center class People and would part out social safety and Medicare.”

Scott rolled out the plan in February, calling it the “11 Level Plan to Rescue America,” which proposed elevating revenue taxes on People.

“All People ought to pay some revenue tax to have pores and skin within the sport, even when a small quantity,” Scott wrote within the plan. “At the moment over half of People pay no revenue tax.”

However Senate Minority Chief Mitch McConnell, R-Ky., shut down the Scott proposal, saying final month that Republicans “won’t have as a part of our agenda a invoice that raises taxes on half the American individuals and sunsets Social Safety and Medicare inside 5 years.”

Senate Minority Chief Mitch McConnell, R-Ky., arrives on the Capitol in Washington, Wednesday, Oct. 6, 2021, as a showdown looms with Democrats over elevating the debt restrict.  (AP Photograph/J. Scott Applewhite / Related Press)

A senior Republican supply advised Fox Information that “revenue tax hikes are by no means a part of the dialogue when Republicans are in cost in Washington.” 

COLLAPSING TRUCKER DEMAND COULD FORESHADOW LOOMING RECESSION

The president stated that there’s “monumental progress within the nation that was affected by every thing from COVID [and more] that occurred alongside the way in which.” 

Biden, although, warned that you simply “at all times have to have a look” on the danger of recession.

“Nobody is predicting a recession now — they’re predicting the summer time, predicting there could also be a recession in 2023,” Biden stated.

“I’m involved about it,” Biden stated, referring to a recession subsequent 12 months. 

“However I do know one factor, that, you realize, if our Republican pals are actually considering doing one thing about coping with financial progress, they need to assist us proceed to decrease the deficit, which we have achieved final 12 months, over $350 billion. They need to be keen to work with us to have a tax code that’s really one which works and everyone pays their fair proportion. And they need to be able the place you should not be elevating taxes on center class people try to be elevating taxes on individuals who everybody acknowledges … aren’t paying their fair proportion,” he stated. 

The GDP numbers come after inflation numbers launched earlier this month revealed a brand new four-decade excessive in March as Russia’s warfare on Ukraine fueled fast value beneficial properties for oil and gasoline that worn out the advantages of rising wages for many People.

The patron value index rose 8.5% in March from a 12 months in the past, in accordance with the Labor Division report launched earlier this month, marking the quickest improve since January 1982 when inflation hit 8.4%. The CPI, which measures a bevy of products starting from gasoline and well being care to groceries and rents, jumped 1.2% within the one-month interval from January.

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FOX Enterprise’ Megan Henney contributed to this report.