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On Monday, U.S. President Joe Biden traveled to Japan to hold talks with Prime Minister Fumio Kishida to announce plans to launch his Indo-Pacific Economic Framework. After the talks, he spoke at a news conference to address the fears surrounding another economic downturn.
Biden dismissed the possibility of a recession during the address but acknowledged that the U.S. economy was undergoing some problems. However, he reassured people that the magnitude of the problem is not as significant as most people believe.
“We have problems that the rest of the world has, but less consequential than the rest of the world has because of our internal growth and strength,” said the U.S. President. “This is going to be a haul. This is going to take some time.”
Despite his comments, the “haul” Biden mentioned will be costly as the Fed signaled it would raise interest rates at an aggressive pace to counter the problems. Talks of the rate increase raised fears of a recession, which President Biden dismissed as he didn’t think a recession would be inevitable.
The President also talked about the surging gas prices, saying that it presented a problem and an opportunity for the country. With the average price per gallon hitting a record $4.59, all 50 states now have average prices above $4 a gallon. Although bringing the prices back down will take time, the United States also has the opportunity to move away from environmentally harmful energy sources and steer towards more sustainable options.
“When it comes to the gas prices, we’re going through an incredible transition that is taking place that, God willing, when it’s over, we’ll be stronger, and the world will be stronger and less reliant on fossil fuels,” said Biden. “It’s bad. The prices of gas at the pump would be a matter of great discussion at my kitchen table when I was a kid growing up. It’s affecting a lot of families.”
Biden also revealed he was considering removing Trump-era tariffs on Chinese goods, a move Treasury Secretary Janet Yellen said would impose more harm than good on American consumers and businesses. Additionally, the President’s Indo-Pacific Economic Framework will be his attempt to engage a region coming increasingly under the influence of China. It will also signal U.S. dedication to the contested economic sphere and address the need for stability in commerce after disruptions caused by the pandemic and Russia’s invasion of Ukraine.
