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Biden says the US recession is avoidable

President Joe Biden has reiterated that a US recession is not ‘inevitable’ following a conversation with former Treasury Secretary Lawrence Summers, who sees a significant chance the country will find itself in the grip of stagflation .

“I was talking to Larry Summers this morning, and there’s nothing inevitable about a recession,” Biden told reporters Monday in Rehoboth Beach, Delaware. “I think we’re going to be able to get a change in Medicare and a reduction in the cost of insulin.”

The White House and congressional Democrats are in talks on legislation aimed at tackling inflation, tackling the deficit and reviving parts of Biden’s agenda. The outlines of a potential deal remain under negotiation, but the package would likely include price caps on insulin – a key drug for diabetics – and federal investments in clean energy and fossil fuels, officials said. people briefed on the talks last week.

It would also further reduce the budget deficit and raise taxes on the wealthy, corporations or both, they said.

Democrats are desperate for a policy response to inflation, which is at its highest level in four decades and, unless curbed, is sure to cost them control of the House, Senate, or both in the coming months. November midterm elections. Gasoline, a staple of US household budgets, costs an average of $5 a gallon nationwide, according to the AAA automobile club, and hit a record high earlier this month.

Seeking to stifle the soaring cost of living, the Federal Reserve accelerated its monetary tightening campaign last week, executing the largest interest rate hike since 1994. The move led to further losses on Wall Street and a raised the risks of a recession that would only compound Biden’s political problems.

Summers, a Harvard University professor and paid contributor to Bloomberg Television, slammed the Fed for not accounting for its mistakes and realizing the damage to its credibility after the latest inflation data wiped out the hope that a peak had been reached.

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