US President Joe Biden admitted the possibility of an economic recession in the United States, but said that if it did happen, it would be “very slight”.
“I don’t think there will be a recession. If there is, it will be a very slight recession,” he considered, this Tuesday, in an interview with the North American television channel CNN.
“It’s possible [uma recessão]. (…) I do not foresee this, ”she added.
Hours earlier, in an update of economic projections, the International Monetary Fund (IMF) had revised the forecast for the United States downwards to 1.6% in 2022, compared to 2.3% in July.
Next year could be even more difficult, with the institution anticipating growth of 1%, due to the reduction in the purchasing power of consumers, mainly due to inflation, accelerated by the rise in fuel prices.
Despite the increase, the OPEC+ oil producer alliance, led by Saudi Arabia and Russia, decided on October 5 to reduce production by two million barrels per day, which represents the biggest cut since the Covid-19 pandemic.
Joe Biden, who had already criticized the decision, warned Saudi Arabia, in Tuesday’s interview, that “there will be consequences” for the decision made “with Russia”, without specifying what measures could be taken against the traditional American ally.
Hours earlier, the spokesman for the National Security Council explained that Biden wanted to reassess the relationship with Saudi Arabia, as a result of that decision, which could raise the price of a barrel worldwide and help Russia obtain more funds to finance the war in Ukraine.
The US president “stands ready to work with Congress to reflect on what this bilateral relationship should look like,” John Kirby said.
On Monday, Bob Menendez, Democratic leader of the Senate Foreign Affairs Committee, the upper house of the US Congress, threatened to block any future arms sales to Saudi Arabia.
Senator Richard Blumenthal and the representative of the House of Representatives, the lower house of parliament, Ro Khanna, (both Democrats) went further and on Tuesday introduced a bill to end these exports.
According to the Stockholm International Peace Research Institute, Saudi Arabia accounted for 24% of total US arms exports between 2016 and 2020.
The relationship between the two countries “is strategic” and “has helped strengthen security and stability in the Middle East,” the Saudi embassy in Washington said.
Bilateral military cooperation “serves the interests of both countries,” the embassy added in a statement issued Tuesday.
Saudi Arabia leads a military coalition that, since 2015, has been fighting Houthi rebels in Yemen, backed by regional rival Iran.
Source: TSF
