Joe Biden was hoping to turn a corner with his administration in the next two years. That may not be possible anymore.
Because the White House was just delivered insane news from a former Obama official.
Former Obama economic advisor and Harvard President Larry Summers was one of the few voices on the Left warning that trillions of dollars in socialist expenditures would drive up inflation.
Summers was ignored by Biden and the Democrats, and inflation reached 40-year highs.
Summers now predicts a severe recession next year.
Summers stated on Andrea Mitchell’s MSNBC show that the Federal Reserve would have to raise interest rates to the point where America would enter a recession if it wanted to choke Joe Biden’s inflation out of the system.
“My guess is that the Fed will, in the end, suffer through a recession if we are going to bring inflation down. Perhaps that was inevitable. Probably that was inevitable given all these stimulus that was provided to the economy in 2021, given that the Fed was late, and very importantly, given all of these supply shocks that the economy suffered,” Summers began.
“But whereas I had thought that the Fed was very much in the wrong place a year ago, way behind the curve in terms of responding to inflation. I think in very difficult circumstances, they are in the range of having done the right things and pointing towards doing the right things. I think the Chairman was right in the film clip. He showed that no one can know what is going to happen going forward,” Summers continued.
Summers went on to forecast that the Fed-induced recession caused by Joe Biden’s inflation would be severe.
“My guess is that we will have a recession. That it will not be especially mild as a recession, but there is no reason to think that it will be anything like what happened after COVID, or what happened after the financial crisis, or what happened when Paul Volcker had to slay inflation after much longer period of high inflation at the end of the 1970s. “Perhaps the unemployment rate will fall to around 6%,” Summers continued.
The source of this inflation-induced recession is Biden’s socialist spending.
And it will come as Biden’s re-election campaign heats up.
Presidents who run for re-election during a recession usually lose.
And because of Joe Biden’s foolish policies, he is already entering the danger zone for Presidents.
So combine a struggling economy with the southern border crisis and international relations getting hotter and hotter, and Americans are growing fed up with the Biden administration by the day.
Don’t forget that Republicans ended up winning the popular vote in the 2022 midterms overall.
That’s a double-digit swing in favor of Republicans in overall popular vote in midterms from 2018 to 2022.
All in all, if the GOP plays its cards right, Biden and the Democrats could be in big trouble in 2024 and beyond.
And that always starts with the economy because that’s where Americans feel it the most.
Stay tuned to DC Daily Journal.