President Joe Biden in a Monday Wall Street Journal op-ed promised a “historic recovery” from the country’s economic woes as experts predict that his policies are leading the United States into a recession.
Biden wrote in the op-ed that he will give the Federal Reserve “primary responsibility to control inflation,” “take every practical step to make things more affordable,” and “keep reducing the federal deficit.”
Biden did not mention the gross domestic product’s 1.5 percent contraction in the first quarter, instead laying the blame for a flailing economy on Russia and the COVID-19 pandemic.
Economic growth under Biden has already slowed more than expected. As the Fed raises inflation, economic hardships will likely get worse, American Enterprise Institute economist Desmond Lachman told the Washington Free Beacon.
“The Fed made a policy mistake in 2021,” Lachman said. “They kept interest rates too low. They kept buying bonds. They kept the money supply growing. The administration and the Federal Reserve got ourselves into an inflation problem.”
The Fed in March hiked interest rates by the most in over 20 years. The United States is heading toward a recession, Lachman said, because of such loose policies.
Lachman is not the only economist to blame Biden’s policies for a looming recession. Many liberal economists, including former Obama advisers Steven Rattner and Lawrence Summers, have argued that Biden’s American Rescue Plan caused 40-year-high inflation numbers.
Summers said in April that a recession under Biden is “the most likely” scenario. An overwhelming majority of Americans agree, saying the United States will go into a recession in the next year, the Free Beacon reported.
The Journal published Biden’s op-ed on the same day that gas prices hit their fourth record high in just this year alone.