- A recession is “probably certain” in the next two years.
- There is a 75% to 80% chance it will happen within that time frame.
- President Biden said last Monday that a recession was not inevitable.
A recession is “probably inevitable” in the next two years, according to former Treasury Secretary Larry Summers. Although there is a chance it will happen sooner.
Summers made this statement on Bloomberg’s “Wall Street Week” on Sunday.
Summers was questioned by Bloomberg TV host David Westin about the biggest risk to the economy going forward.
I think a recession is almost certain, probably a 75% to 80% possibility within the next two years. There’s clearly a serious risk that it will come sooner.
However, President Biden stated last Monday that a recession was not inevitable and that he had spoken to Summers the previous morning.
The president interrupted a reporter who was ready to ask him about economists who were forecasting a recession by saying, “Don’t make stuff up.”
Biden jokingly remarked, “Now you sound like a Republican politician. That was a joke, I repeat, a joke.” “But joking aside, I don’t believe it to be.
Summers replied, “I hope they’re correct. The question is how much of the inflation is temporary. “If the majority of inflation is temporary, we won’t have to endure a lot of suffering.
We’ll have a harder time surviving if more of it becomes deeply ingrained.
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He added that he thinks the nation has to eliminate a “substantial amount of inflation.
“This shouldn’t resemble anything that occurred following COVID. Nothing about what transpired following the Great Financial Crisis should apply to this.
