ICYMI: YELLEN, POWELL & NOTABLE ECONOMISTS HIGHLIGHT FUNDAMENTAL STRENGTH OF THE ECONOMY

FOR IMMEDIATE RELEASE 
July 29, 2022

Contact: 
Jack Miller, Communications Director
[email protected]

ICYMI: YELLEN, POWELL & NOTABLE ECONOMISTS HIGHLIGHT FUNDAMENTAL STRENGTH OF THE ECONOMY

Secretary Janet Yellen: “When you’re creating almost 400,000 jobs a month, that is not a recession.” 

WASHINGTON, D.C. — Following the release of yesterday’s GDP report from the Bureau of Economic Analysis, notable economists responded with a strong message: the U.S. economy is currently too strong to be in a recession.

In the words of Federal Reserve Chairman Jerome Powell, “there are too many areas of the economy that are performing too well.”

Here’s what economists are saying about the economy:

Treasury Secretary Janet Yellen“When you’re creating almost 400,000 jobs a month, that is not a recession… This is not an economy that’s in a recession. A recession is broad-based weakness in the economy. We’re not seeing that now.”

Federal Reserve Chairman Jerome Powell“I do not think the U.S. is currently in a recession and the reason is there are too many areas of the economy that are performing too well… This is a very strong labor market … it doesn’t make sense that the economy would be in a recession with this kind of thing happening.”

Chief U.S. Economist at Bank of America Securities, Michael Gapen: “I don’t think the NBER would look at the data right now and say the economy is in a recession.”

Chief Economist of PNC Financial Services Group, Gus Faucher“Economic growth slowed in the first half of 2022, but the U.S. economy is not in recession.”

Chief Financial Economist at Jeffries, Aneta Markowska“I don’t think we’re in an actual recession. The growth slowdown has been driven by inflation and price shocks—as they fade in the near term, that should allow growth to accelerate.”

Senior Economist at BMO Capital Markets, Sal Guatieri“The back-to-back contraction of GDP will feed the debate about whether the U.S. is in, or soon headed for, a recession. The fact that the economy created 2.7 million payrolls in the first half of the year would seem to argue against an official recession call for now.”

Real-Time Economist Lead at Moody’s Analytics, Ryan Sweet“We’re not in a recession.”

Senior Fellow at the Peterson Institute for International Economics, Jacob Kirkegaard“We have to be careful with saying the GDP number is the absolutely valid metric for economic well-being in the country.”

About Invest in America

Invest In America is a national rapid response operation advocating for robust public investment to rescue the economy from the COVID crisis and create prosperity for the future, and to fight back against fear-mongers who use deficit concerns as a scapegoat to starve American communities and businesses of resources.

The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.

Learn more at InvestInAmericaNow.com and @InvestNowUSA, and InvestinAmericaProject.com.

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