Biden says recession not inevitable as he readies Indo-Pacific trade pact

President Joe Biden promised “concrete benefits” would emerge from a new Indo-Pacific trade framework he’s launching Monday even as he warned Americans worried about high inflation that it was “going to be a haul” before they feel relief. He said he does not believe an economic recession is inevitable in the US.

Biden, speaking at a news conference after holding talks with Japan’s Prime Minister Fumio Kishida, acknowledged the US economy has “problems” but said they were “less conse­quential than the rest of the world has.” He added: “This is going to be a haul. This is going to take some time,” even as he rejected the idea a recession in the US was inevitable.

The comments came just before Biden’s planned launch of the Indo-Pacific Economic Framework, a new trade deal his administration designed to signal US dedication to the contested economic sphere and to address the need for stability in commerce after disruptions caused by the pandemic and Russia’s invasion of Ukraine.

Meeting with Kishida, Biden said the new framework would also increase US cooperation with other nations in the region.

The White House said the framework will help the United States and Asian economies work more closely on issues including supply chains, digital trade, clean energy, worker protections and anticorruption efforts. The details still need to be negotiated among the member countries, making it difficult for the administration to say how this agreement would fulfill the promise of helping US workers and businesses while also meeting global needs.