Karine Jean-Pierre says U.S. not in a recession on 'The View': 'A transition into stable and steady growth'
Thursday's GDP numbers showed a second quarter of negative economic growth, signaling a recession
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White House Press Secretary Karine Jean-Pierre joined "The View" hosts on Thursday and said that the latest GDP report did not indicate the U.S. was in a recession and instead said the White House sees it as being in a "transition."
Co-host Sara Haines asked the White House press secretary about the report, which showed that the U.S. economy shrank 0.9% in the second quarter, making it the second straight quarter of negative GDP growth and therefore indicates the U.S. has entered a technical recession.
"A new report out this morning shows that the economy shrank for a second straight quarter and some say we are officially in a recession, yet President Biden has said we are on the right path. A lot of Americans don’t feel that way. So is there a disconnect here, and is it going to get worse?," Haines asked.
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Jean-Pierre emphasized that Biden understands the "anxiety" that Americans feel with regard to the economy.
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She said that if you look at prior recessions in U.S. history, "you see jobs lost."
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"That's not what we're seeing right now, right now we're seeing gains," she said, noting the 3.6% unemployment rate. "When you look at it more broadly, at the data, that's why we're seeing, what we're seeing, is that we're in a transition. We had this strong economic growth because of the work that the president has done in the past 18 months, and now what we're seeing is a transition into stable and steady growth."
President Biden issued a statement after the GDP report came out saying that it was "no surprise that the economy is slowing down" as inflation remains at a 40-year high.
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Several administration officials and economic advisers set out to redefine a recession ahead of the GDP report release.
"This is not an economy that's in recession," Secretary of Treasury Janet Yellen said on Sunday. "But we're in a period of transition in which growth is slowing."
Director of the National Economic Council Brian Deese appeared to echo Yellen on Monday. "The definition of recession – which has been an issue that I know many of you have reported on as Secretary Yellen said on Sunday – two negative quarters of GDP growth is not the technical definition of recession. It's not the definition that economists have traditionally relied on," he said.
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The White House Council of Economic Advisers said in a blog post on July 21 that even if the GDP report showed a second quarter of negative growth that it was "unlikely" that it would indicate the U.S. economy is in a recession.