Biden’s Treasury Secretary Janet Yellen just tried her hand at a spin on the reality of recession.
The outlook for the future is that there is going to be a negative 1.6 GDP when the numbers come in on July 28th. That will be two consecutive quarters of negative GDP, this is the common definition of recession.
But Yellen took a shot at spinning a redefinition of what recession really is.
On Sunday, the treasury secretary acknowledged the legit definition of recession, she even acknowledged that another negative GDP was likely coming at the end of the month.
But then she did this…she said that this was “not an economy in recession,” and she instead said that the American economy was just in a “slowdown” and a “transition.”
Yellen said on NBC News’ “Meet the Press,” “The economy is slowing down,” and then she noted that a correction is “appropriate” for a “healthy” economy.
“The labor market is now extremely strong. This is not an economy that’s in recession, but we’re in a period of transition in which growth is slowing. And that’s necessary and appropriate, and we need to be growing at a steady and sustainable pace. So there is a slowdown, and businesses can see that and that’s appropriate, given that people now have jobs, and we have a strong labor market.”
“But you don’t see any of the signs now – a recession is a broad-based contraction that affects many sectors of the economy. We just don’t have that,” she added. “I would say that we’re seeing a slowdown.”
She went so far as to say that even if the next GDP is negative, we are not in a recession and we shouldn’t characterize it as a recession.
Even Chuck Todd, the host of “Meet the Press,” thought that Yellen was “splitting hairs.”
So once again, the Biden administration just can’t deal with reality.
Treasury Secretary Janet Yellen: "A common definition of recession is two negative quarters of GDP growth”
“Many economists expect second quarter GDP to be negative. First quarter GDP was negative.” pic.twitter.com/UsKdYCGdEj
— RNC Research (@RNCResearch) July 24, 2022
WATCH: “Should all Americans be preparing for a recession?” @chucktodd
Treasury Sec. Yellen: “The economy is slowing down. … This is not an economy that’s in recession.” pic.twitter.com/SyQjIjr1Gu
— Meet the Press (@MeetThePress) July 24, 2022