WH CEA Chair Dodges on Prospect of Larger Recession: ‘There’s a Path’ to a Soft Landing

On Thursday’s broadcast of CNBC’s “TechCheck,” White House Council of Economic Advisers Chair Cecilia Rouse responded to a question on whether she thinks we could have a recession that is larger than the “slight” recession that President Joe Biden sees as the worst-case scenario by stating, “I wouldn’t say it’s inevitable that we’re going to have a hard landing.” and she believes there’s a “path” to a soft landing.

After Rouse said there’s “a possibility” of a soft landing and “a path” to achieve one, co-host Jon Fortt asked, “That sounds more measured than the President lately, who only allows, it seems, for the chance of a slight recession. From what we see heading into this holiday season, with inventories swelling, weakening consumer demand, and all sorts of geopolitical strife, some people are concerned about the possibility of more than a slight recession. Is there the possibility that we’re headed for more than a slight one?”

Rouse responded, “Well, I wouldn’t say it’s inevitable that we’re going to have a hard landing. I think it’s possible we’ll achieve it. So far, we’ve seen, if you look at the job opening data, we’re seeing the vacancies cool in a way where jobs are not posted, but they’re not laying off workers yet. We’ve got UI claims data today, again, we’re not seeing a pickup in layoffs. So, I do believe there’s a path. Obviously, it’s a challenge, we are facing many shocks to our economy, global economies at the same time. But our economy is strong, it’s resilient. And I do believe that there is a path.”

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