Parroting the new Biden talking points that a recession isn’t a recession, NBC on Wednesday said the whole thing is hard to figure out. According to reporter Tom Costello, “it depends on who you ask.” So who did he ask? Well, the Biden White House of course. Over on ABC, journalist Rebecca Jarvis said that there might not be a recession “technically.”
It was only on CBS that reporter Kris Van Cleave offered the truth: “Tomorrow, we get GDP numbers that are widely expected to show a second consecutive quarter of negative growth, and that is a key indicator traditionally that the U.S. has slipped into recession.” In the past few days, the White House has attempted to claim that two quarters of negative growth is not a recession.
Back on the Today show, Costello noted that the Federal Reserve would likely be raising interest rates again. He wondered, “But is the economy already on a collision course for a recession? It depends on who you ask.” Apparently the person to answer that question is Brian Deese, the National Economics Council Director.
Deese, who was appointed by Joe Biden in December of 2020, redefined the question: “The most important question economically is whether working people and middle-class families have more breathing room and they are able to afford the important things in their lives.”
Costello found the whole situation to be a “head scratcher.”
And that right there is why this economy is such a head scratcher for the Federal Reserve. It doesn't feel like we are on or in a recession for most people. By the way, also watching corporate earnings.
In fairness, the NBC journalists weren’t pretending the economy is in great shape. But they definitely don’t like the word recession. A few minutes later, Today co-host Hoda Kotb suggested labeling a recession a recession didn’t really matter:
HODA KOTB: I keep hearing this debate, are we in a recession? Are we not in a recession? We see it every single day. But if you're Mary Smith walking down the street with your kids going to work, does it matter what they label it? Does it affect them?
MELISSA LEE (NBC/CNBC journalist): No. If you're paying 12 percent more for food versus a year ago, and that 12 percent number, that's just a headline number. A lot of Americans are paying a lot more for particular items. A 13-ounce bag of regular lays potato chips is up 38 percent over last year. So Mary Smith walking down the street is feeling it very, very deeply much more so than the headline numbers the government issues.
But of course it does matter. The Biden White House definitely wants to avoid talking about being in a recession.
Over on Good Morning America, economy correspondent Rebecca Jarvis played it both ways: She admitted things are bad, but, regarding tomorrow’s report on whether we have a second quarter of negative growth, preemptively called the situation not, “technically,” a recession:
Consumers are facing double-digit inflation when it comes to food prices. They're seeing their rents higher. They're seeing prices higher, frankly, in most areas and that has caused consumer confidence to fall for the third straight month and raise concerns of the R-word, the recession, a slowdown in the economy. And, Robin, even if there isn't a recession, technically it can still feel bad out there for consumers.
Kudos to the journalists at CBS Mornings for being much blunter. Co-host Nate Burleson explained, “Today the Federal Reserve is expected to raise interest rates for the fourth time this year to help curb inflation amid fears of a potential recession.”
Reporter Kris Van Cleave added, “[The Fed rate hike is ] necessary, the Fed says, to counter skyrocketing inflation, up 9.1 percent in June. But comes as the economy flirts with recession.” Avoiding the happy talk of his competitors at NBC and ABC, he concluded:
Now the Biden administration points to unemployment levels at 50-plus-year lows as a sign of a healthy economy. Tomorrow we get GDP numbers that are widely expected to show a second consecutive quarter of negative growth, and that is a key indicator traditionally that the U.S. has slipped into recession.
On Monday, the networks let Biden slide on trying to redefine a recession. The New York Times called for ignoring the whole two quarter rule.
The spin on ABC was sponsored by Verizon, on NBC by Xfinity. Click on the links to let them know what you think of such blatant Biden spin.
Partial transcripts are below. Click “expand” to read more.
CBS Mornings
7/27/2022
teaseNATE BURLESON: The Fed is set for another interest rate hike to curb inflation fears, amidst recession fears.
7:10 AM
BURLESON: Today the Federal Reserve is expected to raise interest rates for the fourth time this year to help curb inflation amid fears of a potential recession. The markets finished lower yesterday on those rate hike concerns in addition to some disappointing earnings reports. Kris Van Cleave is in Beloit, Wisconsin, with more on how this affects everyday expenses.
...
VAN CLEAVE: [The Fed rate hike is ] necessary, the Fed says, to counter skyrocketing inflation, up 9.1% in June. But comes as the economy flirts with recession.
...
VAN CLEAVE: Now the Biden administration points to unemployment levels at 50-plus-year lows as a sign of a healthy economy. Tomorrow we get GDP numbers that are widely expected to show a second consecutive quarter of negative growth, and that is a key indicator traditionally that the U.S. has slipped into recession. Vlad?
Good Morning America
7/27/2022
7:09ROBIN ROBERTS: George, now to the economy. The Federal Reserve is set to raise interest rates again as it tries to tame inflation. Our chief economics correspondent Rebecca Jarvis is at the New York Stock Exchange with more. Good morning, Rebecca.
...
REBECCA JARVIS: Consumers are facing double-digit inflation when it comes to food prices. They're seeing their rents higher. They're seeing prices higher, frankly, in most areas and that has caused consumer confidence to fall for the third straight month and raise concerns of the R-word, the recession, a slowdown in the economy. And, Robin, even if there isn't a recession, technically it can still feel bad out there for consumers.
Today
7/27/2022
7:02HODA KOTB: Our big story, our top story, it’s a big, big day for the economy. In just a few hours we expect to see the Fed announcing the next big interest rate hike. It hasn't increased rates this quickly in nearly 30 years.
TOM LLAMAS: Yeah, the change could make the cost of buying a home, paying off credit card debt and leasing a car more expensive. The hope is in the long run it will help control those prices.
...
TOM COSTELLO: We do expect the Fed to raise interest rates today to try to get it under control, but is the economy close to recession? And if the Fed does, in fact, raise rates by as much as three-quarters of a point, could it nudge the economy further into recession? At stake this morning, your credit card rates, new car and bank loans, even new mortgage rates, are influenced by what the Federal Reserve does today. Widely expected to raise rates yet again, perhaps by three-quarters of a percentage point. The fastest, most aggressive series of rate hikes since 1994.
...
COSTELLO: But is the economy already on a collision course for a recession? It depends on who you ask.
BRIAN DEESE (National Economics Council Director): The most important question economically is whether working people and middle-class families have more breathing room and they're able to afford the important things in their lives.
COSTELLO: For Joe-Ann English in Sacramento, it feels more like a depression. She lost her six-figure salary career, then her savings and her home. Now she's living paycheck to paycheck.
JOE ANN ENGLISH: I don't see that there's a light at the end of the tunnel yet. I mean, I'm just struggling to get by. It's hard to stay positive.
COSTELLO: The National Bureau of Economic Research defines a recession as “a significant decline in economic activity spread across the economy lasting more than a few months.” And while overall prices are high, experts say the job market is actually a bright spot with unemployment sitting near 50-year lows. You actually believe the economy is relatively healthy or strong right now?
NELA RICHARDSON (Chief economist at ADP): Yes. I don't see the big signals of recession mainly because I'm looking at the labor market. Everybody who wants a job can find a job in this economy, and that's not typically a characteristic you see in a recession.
COSTELLO: And that right there is why this economy is such a head scratcher for the Federal Reserve. It doesn't feel like we are on or in a recession for most people. By the way, also watching corporate earnings.
...
KOTB: I keep hearing this debate, are we in a recession? Are we not in a recession? We see it every single day. But if you're Mary Smith walking down the street with your kids going to work, does it matter what they label it? Does it affect them?
MELISSA LEE: No. If you're paying 12 percent more for food versus a year ago, and that 12 percent number, that's just a headline number. A lot of Americans are paying a lot more for particular items. A 13-ounce bag of regular lays potato chips is up 38 percent over last year. So Mary Smith walking down the street is feeling it very, very deeply much more so than the headline numbers the government issues.
