On 7/24/2022, Janet Yellen announced that the likelihood of a negative GDP number for the second quarter is high. That would mean the country is officially in recession having two quarters of negative GDP growth this year. She said, “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.” Last year Yellen said the inflation rate was “a small risk” as Democrats kept pushing for more and more government spending. Yellen admitted she was wrong about inflation in her June statements. Now she changes to view again.
On 7/24/2022, Commerce Secretary Gina Raimondo said inflation has “probably” peaked. “Has inflation peaked?” CBS’s “Face the Nation” host Margaret Brennan asked Gina Raimondo. “Probably,” Raimondo replied. Flashback December 10, 2021, Joe Biden confidently said that inflation was at its peak, he claimed 6.8% inflation was the “peak of the crisis” and high gas prices were just a “bump in the road.” Fast-forward to mid 2022 and inflation has skyrocketed to 9.1%.
Former Harvard University President and former Clinton administration Treasury Secretary Larry Summers talks about the likelihood of an economic recession with CNN’s Fareed Zakaria. Summers said that there is a “very high likelihood of recession”, and that big “risk of stagflation” for a number of years.
On 7/22/2022, during press conference, White House Press Secretary Karine Jean-Pierre was asked, “Is the White House trying to change the common definition of a recession?” A reporter asked, “Next week is a very big week for the economy. So, I read the CEA blog. Is the White House trying to change the common definition of a recession? Because next Thursday, the GDP numbers coming out are going to show that we’ve been in recession.”
Jean-Pierre: So let me say this: You know, the strength of our labor market, along with the other economic factors, is what we generally see in a recession or even a pre- — a pre- — what — is not what we generally see in a recession, or even a pre-recession, because we’re seeing the strength of the economy and the labor market. So that’s really important to note back there because those are key elements, as we talk about that, as folks keep asking us about that. So Americans across the country are back to work at a historic level … last month, the unemployment rate was a new low in eight states. So, again, the strength of our labor market, along with the economic indicators, is not what we generally see as we talk about recession or even pre-recession.
On 12/10/2021, Joe Biden delivered remarks at the Summit for Democracy. A reporter asked, “President Biden, inflation just hit nearly (inaudible) — (music played over audio feed).”
Biden: (Inaudible) peak of the crisis, and I think you’ll see it change sooner than — quicker than — more rapidly than it will take than most people think. Every other aspect of the economy is racing ahead. It’s doing incredibly well. We’ve never had this kind of growth in 60 years. But inflation is affecting people’s lives. But if you take a look at it, if you — if we were — if and when, God willing, we get the Build Back Better proposal — if you look at what — what’s inflation all about for people? They’re paying more for things they need than they had to pay before. That’s the bottom line.
On 7/19/2022, Rep. Garret Graves questioned Secretary Pete Buttigieg about DOT Grant Funding.
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Yellen high risk Q2 negative GDP number; Summers: High risk recession & stagflation; Biden & Raimondo: inflation peaked.