Sinema.
Judy: A new report today
indicates the U.S. Economy is in
a slow down for certain and
possibly a recession.
The gross thomistic product fell
into negative territory.
Dropping by nearly 1%.
Economists mark a recession by
two straight quarters of
negative growth of the jobs
market has remained strong which
muddies the picture.
The president and his team are
insisting this is not a
recession yet.
They believe a recession is
already underway.
I'm joined from the white house
by Jean sperling, senior advisor
to president Biden and the
American rescue plan
coordinator.
Jean sperling, welcome back to
the newshour.
It is not knowable if the
country is in a recession.
We know that growth is slowing.
Does the president think it is
more important to continue this
focus on fighting inflation?
Or is it time to turn and focus
more on this existing slow down.
>> The entire reason for being
here and energizes the economic
policy, and right now for
working families, the number one
issue is higher prices.
It's partly because we've had so
much job growth and so much
unemployment.
So his focus is very much on the
things that we can do to lower
prices.
Some of that is about the
release of thetrategic
petroleum reserve that has
helped us see gas prices go down
by $.75.
Some of the things that you were
just talking about, the
legislation we can do.
A provision that can lower the
price of prescription drugs.
Energy costs on a number of
different products.
It would create more jobs here.
But to understand the pinch and
squeeZ.
Judy: I heard what you said that
the president wants to focus on
rising prices.
If you step back a moment, the
American people are getting
whipsawed.
They are dealing with higher
prices and looking at a
situation where purchasing power
has been cut into.
The increase in wages has slowed
down.
People are looking at this and
feeling the hurt in both
directions.
When is the right moment to
focus on a slowing economy?
>> It is probably better suited
to the chair of the federal
reserve.
It will independently make
assessments when they feel they
have raised interest rates to
tame inflation.
But what you have heard from
them is consistent with our
aspiration which is that we want
to make this transition from
this red-hot economy.
A more stable growth with
moderate prices while still
keeping the gains that we have
had.
There is no way the last six
months of recession, it creates
2.7 million jobs.
We have never before created 2.7
million jobs.
It is certainly not consistent
with recession.
What we are seeing is a little
more resilience the fact that so
many people are working, the
fact that there is less credit
card delinquencies, they are
seeing consumers spend 10% more
than year.
People are talking about the R
word but one of the are words we
are seeing is resilience.
Because of the steps president
Biden has taken, we are better
positioned than any country.
The hall of --
Judy: It is a fine line to walk
and I'm assuming you feel the
same way.
>> I think that some of those
decisions are for the federal
reserve.
We will do everything we can to
have the back of working
families.
The policy overall, we are
taking steps to lower prices.
How long have we heard
administrations be able to
negotiate.
We have a chance to lower energy
prices.
Less vulnerable to foreign
countries.
We see a strong focus on
creating incentives to create
jobs in the United States.
Judy: What are you saying to
Republicans looking at this deal
saying it will add to inflation?
>> They need to look at the
whole deal.
The whole deal is
anti-inflationary.
We've had our disagreements with
fan -- friends sometime
including senator Manchin and
Larry Summers.
But from Larry Summers to
Elizabeth Warren, everyone is
united that this plan pays for
itself and reduces the deficit
by at least $300 billion.
It is anti-inflationary because
on the whole it is reducing the
deficit.
It is also doing things like
saving 280 billion dollars to
consumers and the medicare
program.
That is directly lowering prices
.
And particularly seniors for not
only this year but for decades.
Judy: Speaking of inflation,
they are now acknowledging that
they were late to recognize that
inflation was going to be as
serious as it was.
>> I think what we have
acknowledged is that we have
always been very close to what
the private sector top
economists say.
We were projecting that
inflation was going down and
that was just the consensus
position of virtually every
expert in the country.
One thing with the economy is
that unexpected things happen.
How delta and omicron would
bottle up the supply chains.
None of us imagined that prices
were going down.
We would have an unthinkable war
of aggression that would send
gas prices up around the world.
I think that we have the right
private-sector consensus and
unexpected things happened.
It can always happen with any
economic forecast.
Judy: Senior advisor Jean
sperling.
>> Think you, Judy.