Biden and Powell Are in Denial—A Recession Is Indeed “Inevitable”

On Wednesday, Chairman Powell tried to assure the public that the Federal Reserve could engineer a "soft landing. On Thursday, President Biden was similarly hopeful, claiming that a recession is not inevitable."

That same day, investors splashed cold water on Biden and Powell's hopes. After the Fed's announcement, markets briefly rallied before tumbling yet again.

Yet it's not just traders who beg to differ with the rosy optimism emanating from the White House and the Fed, but economic reality itself. Biden and Powell are in denial. A soft landing is impossible, a recession is inevitable, and it is their own policies that made it so.