Polls show Americans hold negative feelings about the economy.
There is a good reason for that.
Americans got this sick warning about Joe Biden causing a massive economic collapse.
America saw the economy contract in the first and second quarters of 2022.
Two straight quarters of negative Gross Domestic Product is the technical definition of a recession.
Biden administration officials breathed a sigh of relief when the third quarter GDP number came in at 2.9 percent.
But it was not all sunshine and rainbows on the economic front.
PIMCO economist Tiffany Wilding appeared on CNBC’s Squawk Box and broke some bad new about the GDP report.
Wilding explained that when you crunched the internal numbers from the report, much of the growth stemmed from an increase in exports, consumer spending, government spending, and nonresidential fixed investment.
Core growth actually slowed down as the Federal Reserve imposed successive .75 point interest rate hikes in the hopes of tamping down the red hot inflation that Joe Biden’s socialist spending caused.
“If you dig into the details of the third quarter GDP number, what you find is that when you exclude those more volatile categories, growth was actually pretty subpar,” Wilding added. “Core growth has decelerated quite a bit and that’s even before you really start to feel the effects of Fed policy and Fed tightening.”
Biden administration officials hoped for a soft landing for the economy, meaning that it slows down without entering into a recession.
Wilding says her firm does not believe that is the case and expects the economy to likely enter into a recession in 2023.
“We do think the economy slips into a recession next year under the weight of the tightening financial conditions that we’ve seen so far. But nevertheless, of course, it’s always good news to have some slight upper revisions to the third quarter GDP growth,” Wilding continued.
PIMCO is not the only outfit predicting a recession in 2023.
A Bloomberg survey found a 100 percent chance of the American economy sinking into a recession over the course of the next year.
The blame for any recession would fall at the feet of Joe Biden.
Joe Biden overheated the economy by ramming through over $3 trillion in socialist spending that spiked inflation to the highest level in 40 years.
And the only question remaining is the severity of the oncoming recession.