Markets Tank as KJP Insists Economy Is in “Transition to Stable Growth”; Fed Projects 0.2% Growth; Reporter Asks if Celebrations Are “Insensitive”

On 9/23/2022, with markets tumbling, KJP insisted the economy was in “a transition to more steady and stable growth” — the same phrase she had been using for months. The Federal Reserve had just projected GDP growth of only 0.2% for the year and 1.2% for the next. A reporter asked whether the White House’s back-to-back celebrations — the IRA signing when core inflation rose, and another event 48 hours after the Fed Chair warned of “more economic pain” — were “insensitive to what Americans are going through.” KJP said the stock market was “just one measure."

"Transition to Steady and Stable Growth”

KJP delivered the now-familiar framing. “What we are seeing, and I’ve said this before, is a transition to a more steady and stable growth. And that’s what we’re currently seeing and in the process of moving the economy into,” KJP said.

A reporter confronted her with the Fed’s own projections. “The Federal Reserve is saying that the economy will significantly slow down to growing just 0.2% for the entirety of this year and then 1.2% for next year. Is this the stable growth the President is moving us towards?”

“We’re coming off of last year’s historic economic growth. A lot of that is because of the American Rescue Plan,” KJP said. “So it’s no surprise that the economy at this point is going to slow down, cool off just a bit, as the Federal Reserve takes action to bring down inflation.”

“The Fed’s projection implies growth between 1 and 2% in the next two quarters,” a White House economic official added. “We believe the transition remains possible. We believe we will get to strong and stable growth.”

Stock Market “Just One Measure”

With markets falling sharply, KJP downplayed the significance. “The stock market is just one measure of the economy that shows how the economy is doing. It’s also important to look at what’s happening on Main Street,” KJP said.

She pivoted to jobs. “We have one of the strongest job markets on record. There’s always more work to do, but the President’s economic plan — the American Rescue Plan, the Inflation Reduction Act — is going to make sure we don’t leave anybody behind,” KJP said.

The stock market dismissal was notable given that Biden himself had touted market records earlier in his presidency as evidence of economic success.

”Are Celebrations Insensitive?”

A reporter posed the question directly. “In the last week, Americans saw the President do the IRA celebration when core inflation rose for the first time in five months on that day. This week is another celebration 48 hours after the Fed Chairman said there would be more economic pain. Are the optics of those two celebrations insensitive to what Americans are going through?”

“The President has always, when he talks about the economy, made clear to understand what American families are going through,” KJP said. “He understands that inflation, high costs, is giving some pain to Americans. That is why we passed the Inflation Reduction Act.”

She noted gas prices had declined “for 14 weeks straight” — while not addressing that they remained far above pre-Biden levels and that every other category of consumer spending was still elevated.

The “Transition” Timeline

The word “transition” had become the administration’s all-purpose economic descriptor. KJP and Brian Deese had been using it since at least mid-2022 to describe an economy that was simultaneously:

Not in recession (despite two consecutive quarters of GDP contraction)
Experiencing “historic growth” (from pandemic recovery)
“Cooling off” (as the Fed raised rates)
In “transition” to stability (with no defined endpoint)

The term served to acknowledge problems without accepting blame — the economy wasn’t bad, it was just transitioning. When reporters asked when the transition would end, the answer was always some variation of “it’s happening right now.”

Key Takeaways

KJP called the tanking market “just one measure” and insisted the economy was in “transition to steady and stable growth” — a phrase used for months without a defined endpoint.
The Fed projected just 0.2% GDP growth for the year; KJP called the slowdown “no surprise” and said the economy was “cooling off just a bit.”
A reporter asked whether back-to-back White House celebrations during inflation spikes and Fed pain warnings were “insensitive”; KJP said Biden “understands” what families are going through.
Gas prices were down 14 weeks but remained far above pre-Biden levels; every other cost category was still elevated.
The administration used “transition” to acknowledge economic problems without accepting responsibility.

Transcript Highlights

The following is transcribed from the video audio (unverified — AI-generated from audio).

The stock market is just one measure. What we are seeing is a transition to more steady and stable growth.
The Fed projects 0.2% growth this year. Is this the stable growth you’re moving us towards? It’s no surprise the economy is going to cool off just a bit.
Are the celebrations insensitive to what Americans are going through? The President understands that high costs are giving some pain.
We have one of the strongest job markets on record. We’re not going to leave anybody behind.
Gas prices have gone down for 14 weeks straight. That’s because of the work this President is doing.
We believe the transition remains possible. We believe we will get to strong and stable growth.

Full transcript: 847 words transcribed via Whisper AI.