CNN’s Harwood: ‘Silly Debate’ Is Over, Jobs Report Makes ‘Pretty Clear that We’re Not’ in a Recession

‘Politically at this moment this is a very good report for President Biden’

EXCERPT:

HARWOOD: "Well, politically, at this moment, this is a very good report for President Biden. First of all, we had a couple of weeks ago a silly extended debate over whether or not we were in a recession. These numbers make pretty clear we are not in a recession. You don’t add half a million jobs when in a recessionary environment, makes it more likely that that first quarter GDP number will be revised up and not be negative as it was in the initial report. There is nothing presidents like better than adding a lot of jobs and being able to tell Americans it is a great time to go out and get a job. The flip side, of course, as Marc just referred to, is it means a hot economy, and because both President Biden and the Fed have indicated that getting inflation down is a top priority, remember, inflation has been a huge political problem for President Biden, that means the Fed is likely to have to be — continue to be very aggressive in terms of raising interest rates. Now, in the immediate term, the economy is in quite good shape. But it does present the possibility that if the Fed slams on the brakes too abruptly, not skillfully enough, you could end up in a recession either late this year or in 2023. But right now this is a very strong economy, very strong labor market, and the President is going to crow about that today."

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