Are we in a recession?

They will never learn. Federal Reserve Chairman Jerome Powell apologized for calling inflation “temporary” when all the data pointed to it rising. The White House conveniently changed the definition of a recession a few days before the GDP data was released and said two consecutive quarters of decline no longer qualified as a recession. Now Treasury Secretary Janet Yellen is preaching that the US economy is simply in a state of transition.

“When you look at the economy, job creation continues, household finances remain strong, consumers are spending money, and businesses are growing,” Yellen actually said. Inflation has hit 9.1% and people can no longer afford the once-promised American dream. “We have entered a new phase of our recovery aimed at achieving sustainable, stable growth without compromising the gains of the past 18 months,” the treasury secretary said, according to CNBC. “We know that challenges lie ahead of us. Global growth is slowing down. Inflation remains unacceptably high, and the administration’s main task is to bring it down.”

How can lowering inflation become a top priority if the president continues to withhold domestic energy production, spending money recklessly? The truth is that they know they will cause mass panic if they tell the truth… US in recession.

Jerome Powell also covered up the lie last week, saying, “I don’t think the US is currently in a recession and the reason is that too many areas of the economy are doing too well.” Powell cited the high employment rate as a front. However, at the beginning of the year Powell admitted that the unemployment rate must rise to tame inflation. He doesn’t want to harass the markets or force capital to flee the US, as if there are better places to go at the moment. “You tend to take first GDP reports with a grain of saltPowell said unexpectedly.

Biden also delivered a dialogue about unemployment, forgetting that his COVID policy is what drove most workers out. Biden bluntly stated that there is no recession in the US. The personal consumption price index jumped 6.8% in June this year, marking the biggest rise since January 1982. The CPI hit 9.1% in June, a 40-year high. Inflation suppresses any increase in wages. The supply chain is still congested even as Chinese ports reopen and demand far exceeds supply. This is not just a transitional period, and our models warn that the economic downturn could continue into 2023.

Fast Are we in a recession? first appeared on Armstrong Economics.