After Bank of America CEO Brian Moynihan reminded the Biden administration that “recession is a word” in an interview with The Associated Press, the Fox News contributor and King’s College economics professor, Brian Brenberg, tells the president to “just accept” the state of the economy.
“I think what people are sick of is hearing the administration jump through hoops trying to deny this. Just accept it. It’s not good,” Brenberg said on a Varney & Co. panel Thursday.
“Call it recession, call it what you want. We have to fix it,” Brenberg continued. “The administration won’t do that. That’s why people get upset.”
Although US GDP has recorded two consecutive negative quarters, President Biden and his administration have repeatedly insisted that the country is not in recession, but rather the economy is showing signs of “slowing down”.
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Moynihan said in the interview that Biden’s attempts to argue that the United States isn’t technically in a recession were unhelpful.
“Recession is one word. Whether we’re in a recession or not is really not the important thing. It’s how people going through this feel,” Moynihan said.
While Brenberg argued that the Federal Reserve is behind the inflation curve, a rate hike won’t give markets the “shock” they need.
“The problem here is supply. We still don’t have enough people in the labor market. We still don’t produce enough,” Brenberg explained. “You can reduce demand all you want, but if you have an administration raising taxes in the middle of a recession, you’re not going to get where you need to be.”
“The shock is on the political side, not on the monetary side,” repeated the professor.
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If the Fed continues to focus on the demand side, it will “miss it,” Brenberg said.
“What would shock the market is if we had an administration that stopped talking about spending and tax increases,” the professor said, “that’s what the economy needs.”
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Ken Martin of FOX Business contributed to this report.