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Biden advisor does not think the US is in recession

The U.S. economy is facing both positive and negative trends, making it difficult to determine if we have fully entered a recession, according to its top economic adviser.

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White House economic adviser Larry Summers said Sunday that it was “very hard” to determine whether the US economy had entered a recession because the economy is experiencing both positive and negative trends.

“Fox News Sunday” anchor Shannon Bream was told by Jared Bernstein that there was still strong job growth and strong consumer spending factors despite inflation remaining at a 40-year high,”

Considering payroll and job growth, he argued, “it is difficult to conclude we are in a recession.” “You’ve got inflationary pressures right now, but you’ve also got some very strong tailwinds that are boosting consumers,” he says.

As a result of high gas prices and inflation concerns, President Biden’s job approval rating has fallen significantly this year.

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Stock markets fell into bear market territory and GDP fell in the first quarter of the year, and the second quarter is expected to be negative as well. This sparked fears of a recession.

According to a survey conducted last month, more than half of Americans believe that the United States has already entered a recession.

According to Bernstein, the U.S. has reduced its budget deficit by $1.7 trillion this year, mainly due to an increase in revenues of 26%.

The economic adviser said that the revenue increase, along with low unemployment rates and continued high consumer spending, indicated that the economy was still in good shape.

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When the economy is taking the kind of hits that have been discussed, how can we get faster revenue increases? There must be a lot more economic strength than most people think, and in fact, this is the case. According to Bernstein, “there is no denial at all about the unacceptability of these elevated prices, but underneath that is an economy with the strongest labor market in a generation.”

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