Jimmy Carter Admits Likelihood of Recession Amid 1980 Economic Turmoil

On April 17, 1980, President Jimmy Carter held a news conference during which he acknowledged the growing likelihood of an economic recession in the United States. This was a significant admission, as the country was already grappling with severe economic challenges, including high inflation, rising unemployment, and sluggish growth—a toxic combination known as stagflation. Carter’s comments were part of his broader effort to prepare the public for the difficult economic times ahead while trying to maintain confidence in his administration’s ability to handle the crisis. Context: The Economic Turmoil of the Late 1970s The U.S. economy had been in a fragile state throughout the late 1970s. The decade was marked by several oil shocks—first in 1973 and then in 1979—that led to soaring energy prices, contributing to inflation. These crises were compounded by supply chain disruptions and declining productivity, leaving the economy unable to grow at its usual pace. Additionally, global events such as the Iranian R