The US economic data, including the June jobs report, are not consistent with a recession in the first or second quarters, the White House said in a memo released on Tuesday, as reported by Reuters.

Key takeaways

"US labor market strength puts the US in a better position than many other countries to transition to lower inflation and steady growth."

"Impact of energy and food prices on annual headline CPI in June will likely exceed 40%, based on market expectations."

"Gasoline prices likely to account for more than 100% of the expected increase in annual CPI in June report due on Wednesday."

"US gasoline prices can be expected to decline in weeks ahead."

"US economy appears to be transitioning to a period of slower job and economic growth."

Market reaction

The US Dollar Index showed no immediate reaction to these remarks and was last seen losing 0.25% on the day at 107.95.