Harvard professor, economist, and administration official under both former Presidents Bill Clinton and Barack Obama, Larry Summers isn’t drinking President Joe Biden’s Kool-Aid about the economy.
On Bloomberg’s “Wall Street Week” on Friday, Summers said there was a 50-50 chance that GPD growth for the second quarter of 2022 was negative, which would mean the U.S. is now in a recession.
Summers stated, “Look, David, we’ve got the first quarter numbers in the bank. They are negative for GDP. There are many forecasters who believe that the second quarter, which ended yesterday, also had negative GDP growth. It’s not really the formal definition of a recession, but people often say it’s a recession when you have two quarters of negative GDP growth in a row. And there’s, I think it’s probably close to a 50-50 chance, maybe it’s a bit less than that, that we’ve had two negative quarters in a row.”
“The nearer-term risks have certainly gone up,” he added.
It’s good to see at least one Democrat being more honest about what everyone can clearly see is going on with the economy.
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