Biden Reacts to Latest GDP Report That’s Now Fueling Recession Fears
President Joe Biden on Thursday responded to a report showing the economy shrank for a second consecutive quarter, which by some definitions, means the United States has technically entered a recession.
The Bureau of Economic Analysis said Thursday that gross domestic product, or GDP, shrunk 0.9 percent at an annualized pace for the second quarter, following a 1.6 percent decline in the first quarter.
“Coming off of last year’s historic economic growth–and regaining all the private sector jobs lost during the pandemic crisis–it’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation,” Biden said in a statement after Thursday’s figures were released. “But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure.”
Biden then said the U.S. job market “remains historically strong” and “consumer spending continues to grow.”
Officially, the National Bureau of Economic Research (NBER) is the entity that declares recessions and expansions. It’s not clear when the organization will make its official judgment on the state of the U.S. economy.
Definition
The White House and some legacy news outlets have been criticized for downplaying the risk of a recession and attempting to change the common definition of a recession. A second straight negative GDP posting is a long-held view that an economy is technically in a recession.
“Two negative quarters of GDP growth is not the technical definition of recession,” National Economic Council adviser Brian Deese told reporters on Tuesday. “The most important question economically is whether working people and middle-class families have more breathing room.”
Consisting of eight prominent economists, NBER has previously said that it relies on more data than just GDP to determine whether a recession is occurring or not. Those factors include unemployment, consumer
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...