Jason Furman, former Chairman of the White House Council of Economic Advisers during Barack Obama's tenure, dismissed fears of an imminent U.S. recession but urges the Federal Reserve to act decisively if unemployment rises.

What Happened: On Thursday, Furman spoke during CNBC's "Squawk Box" to express his views on the current economic climate, highlighting that panicking with "emergency rate cuts" is not required at the moment.

"The odds are we are not going to have a recession...it's just that inflation is about half a point above where it should be. The unemployment rate is rising. I think inflation is going to head probably back down certainly if the unemployment rate stays there," he said.

However, he also warned that if the unemployment rate rises even by one or two-tenths in the next jobs report, the Federal Reserve "would need to act in a very strong and decisive way."

Former @WhiteHouseCEA Chairman @JasonFurman says there's no compelling reason to think the U.S. economy is heading into a recession.
But if the unemployment rate rises in the next jobs report, he says he thinks the Fed "would need to act in a very strong and decisive way." pic.twitter.com/kgXqqARoBH

— Squawk Box (@SquawkCNBC) August 7, 2024

Why It Matters: A weak July employment report and unsettled global equities have stirred fears of a possible recession among investors.

Furman's comments align with the views of Ed Yardeni, a veteran Wall Street investor, who recently argued that a weak employment report does not necessarily indicate a recession.

Furthermore, a recent Benzinga poll revealed that 75% of adults believe that lower interest rates could deter an economic downturn. This suggests a strong public sentiment in favor of decisive action by the Federal Reserve.

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