The White House brushed off concerns that a dip in gross domestic product in the first quarter of the year and surging prices are worrying indicators for the U.S. economy as trade slows around the world.
“Our economists and our economic team continue to feel confident in the strength of the economy, even as we monitor a range of data,” press secretary Jen Psaki said. Consumer spending and business investment are up, Psaki noted. “The decrease as it relates to exports is largely because our economy is stronger than many economies around the world.”The Federal Reserve’s preferred measure of core inflation, the personal consumption expenditures price index, jumped 6.
Austan Goolsbee, a former chairman of the Council of Economic Advisers during the Obama administration, said Friday on Fox News that President Joe Biden’s response to the economic contraction appeared to “underplay” some of the risks and noted slowing trade with Russia. According to a recent Associated Press/NORC poll, 70% percent of voters said they believed the economy was faring poorly, compared with 29% who said it was doing well.
The White House has remained circumspect despite this. On Thursday, Biden assured reporters that he was “not concerned about a recession.” The president also noted that the unemployment rate is also at its lowest number since 1970.But despite the president’s efforts to calm the waters, outside experts are raising the alarm.
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