Prepare the talking points, the Biden administration has some ground to cover!
Just like with recession, the Biden administration will soon be forced to explain why they never foresaw an economic recession despite endless data that predicted exactly that.
That’s precisely what Larry Summers predicts. As a former Treasury Secretary for Bill Clinton and an economic advisor to Barack Obama, Summers is not unaware of the trends associated with a full recession.
Quality of life across the board has palpably decreased and more people every day are struggling to fill their tanks and/or feed their children — all while the Biden administration tries to pull the wool over our eyes.
However, economists like Summers are predicting serious economic recession stemming from historic Bidenflation and lack of consumer confidence.
“I think there’s certainly a risk of recession in the next year,” Summers said on CNN’s State of the Union on Sunday. “I think given where we’ve gotten to, it’s more likely than not that we’ll have a recession within the next two years.”
"Secretary Yellen…said this week that 'there is nothing to suggest a recession is in the works.' Do you agree?"
Obama Treasury Sec. Larry Summers: "No … The optimists were wrong a year ago in saying we'd have no inflation, and I think they're wrong now." pic.twitter.com/hzIKvUhe35
— RNC Research (@RNCResearch) June 12, 2022
Summers, who served as treasury secretary under former President Bill Clinton and as director of the National Economic Council under former President Barack Obama, has been outspoken in warning that President Joe Biden’s economic policies are damaging the country.
In March 2021, Summers blasted Biden’s $1.9 trillion American Rescue Plan as “the least responsible macroeconomic policy we’ve had in the last 40 years” and warned that it would “set off inflationary pressures of a kind we have not seen in a generation.”
Inflation soared to 8.6% for the 12 months ending in May, the Bureau of Labor Statistics revealed on Friday, despite the Federal Reserve’s interest rate hikes.
There are concerns that the Fed’s aggressive interest rate hikes, in an effort to stave off inflation, could plunge the economy into a recession.
Sen. Rand Paul (R-KY) predicted last week that the Fed would continue to raise interest rates until they reach the level of inflation.
“I think the Federal Reserve is going to keep putting [interest rates] up a half a point every time they meet. I think that happens probably every four to six weeks until they reach the inflation rate,” Paul said last week. “And inflation rate is 8.5%, and we’re closer to the Fed funds rate being around 3% or so.”
Yellen, however, dismissed talk of a recession last week, saying, “Don’t look to me to announce it,” while insisting that the fundamentals of the economy are strong as inflation rages.
She also admitted to being “wrong” about inflation during a bombshell CNN interview. Calls for her resignation immediately followed, but Yellen never acknowledged any backlash.
In fact, her admission comes the administration undergoes a significant shift toward ‘controlled transparency’, where they only admit to wrongdoing when it’s politically expedient.
Author: Nolan Sheridan