Wall Street experts have issued a grim warning after Democrat President Joe Biden attempted to gaslight the American people over the gloomy economic outlook.
Following a dismal gross domestic product (GDP) report on Thursday, Biden tried to claim that the economy looks hopeful.
However, Wall St. executives are not buying it and are now preparing for the worst, Politico is reporting.
The Bureau of Economic Analysis (BEA) released the latest GDP statistics on Thursday morning.
According to the report, the U.S. economy’s annual growth rate slowed more than expected to 1.1% in the first quarter of 2023.
The vast majority of the financial sector agrees the economy will continue facing difficulties this year, according to Politico.
Over a dozen large banks have now predicted poor growth or a recession for 2023.
“The U.S. economy is unwell, and it’s starting to show,” Chief Economist at EY-Parthenon Gregory Daco tweeted Thursday morning.
The US economy is unwell, and it’s starting to show.
It started 2023 on a soft note with real GDP advancing a modest 1.1% in Q1 – below expectations. pic.twitter.com/nmbYfavprP
— Gregory Daco (@GregDaco) April 27, 2023
According to The Wall Street Journal, growth was 2.6 percent in the fourth quarter of 2022.
Economists had expected 2% growth for the first quarter of 2023.
Biden responded to the report by claiming that the poor growth was expected.
“Today, we learned that the American economy remains strong, as it transitions to steady and stable growth,” Biden said in a statement on the GDP.
“We continue to expect economic growth to slow, and we are preparing for a range of scenarios,” Wells Fargo CEO Charlie Scharf said on a first-quarter earnings call on April 14.
Other financial executives are making comparable remarks during earnings calls as well, according to Politico.
While some are forecasting a major economic downturn, others are predicting more of a “shallow recession.”
“Our research team continues to predict a shallow recession that will occur beginning in the quarter three of 2023,” Bank of America CEO Brian Moynihan said on a first-quarter earnings call on April 18.
Meanwhile, U.S. consumers have continued to experience ongoing inflation and rising interest rates,
According to the WSJ, the poor economic clime has been contributing to a decline in retail spending in February and March.
Home sales and manufacturing output also decreased in March.
The Federal Reserve has been hiking interest rates in an effort to lower inflation and has raised them to a target range of 4.75-5%.
“I’ve never been more optimistic about America’s future,” Biden has repeatedly stated.
READ MORE: One of America’s Largest Banks Is on Verge of Collapsing