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The Biden Administration acknowledged that there is a “risk” of recession in the midst of high inflation in the country and stressed that the economy is in a period of transition.
This was stated by the director of the White House National Economic Council, Brian Deese, in an interview with the CNN television network.
Regarding the possibility of a recession, Deese acknowledged that there are always risks given the global challenges and the monetary measures adopted to address the high inflation rate, the highest since the early 1980s.
The Federal Reserve (Fed) kept interest rates for two years in the range between 0 % and 0.25 % to stimulate the economy, but has already approved two consecutive hikes so far in 2022 to contain the price boom.
Thus, the official interest rate of the world’s largest economy is now in a range between 0.75 % and 1 %, and further increases in the price of money are expected.
According to data from the Department of Commerce, inflation in the United States continues at historic levels not seen for forty years, although it moderated slightly in April to 8.3%, two-tenths of a percentage point less than in March.
