New Media Talking Point: Economy Not in Recession – It’s Recalibrating!

Don’t worry about the floundering economy, the White House has explained that it is simply “recalibrating.” That’s according to the network journalists on Thursday who parroted the Biden administration’s attempt to redefine a recession as something other than two quarters of negative growth. Recession is simply a “buzzword” that doesn’t mean a whole lot. 

Later in the morning, as the New York Post put it, “The US gross domestic product posted its second straight quarterly decline in an alarming development that economists widely view as the definition of an economic recession.” But CBS Mornings previewed the bad news with naked spin. 

According to Nancy Cordes, “Typically, if GDP falls for a second quarter in a row, that could signal a looming recession. But the Biden administration has been insisting that that is not the case this time around, that the economy is simply recalibrating after a post-pandemic boom.” 

Got that? Just recalibrating.

Talking to CBS analyst Jill Schlesinger, co-host Nate Burleson wondered if the term even mattered: “You mentioned Federal Reserve chair Powell. He said we’re not in a recession, but you know, we’re looking at this and hearing about recession. It’s almost like a buzzword now. Are we in recession?” 

Schlesinger worried that if people hear the U.S. economy fits the definition of a recession, they might think we’re… in a recession: “Here’s what [Fed Chair Jerome] Powell’s really worried about —  he’s saying everyone’s talking about recession, it’s getting ingrained. People are worried about inflation.” 

Over on Good Morning America, reporter Rebecca Jarvis stressed that you definitely shouldn’t consider Thursday’s news a recession: “One way that people define a recession is not the official definition of a recession.” 

She then explained: 

The National Bureau of Economic Research is the arbiter, the semi official arbiter of recessions here in the United States and define a recession as a significant decline in economic activity spread out across the economy and lasting more than a handful of months. We’ve had recessions that didn’t have two back-to-back quarters of economic decline. Sometimes it does happen but the important thing to keep in mind, Robin, we’ve said it before, it can still feel bad out there even if it’s not technically a recession. 

Over on the Today show, NBC’s Gabe Gutierrez touted the Biden spin: “The White House and Fed chair Jerome Powell say they do not think the U.S. Is in a recession yet.” 

On Wednesday, NBC’s Tom Costello said that a recession “depends on who you ask.” He then asked Brian Deese, the National Economics Council Director appointed by Biden. Unsurprisingly, Deese said no recession. 

To be clear, all three networks are acknowledging that the economic situation is bad. Jarvis noted that it’s “a lot more expensive to own a home, to pay down your credit cards, to buy a new car with an auto loan.” But they are desperately trying to avoid officially accepting that the U.S. is in a recession. 

Why? Well, the Democratic Party is in bad shape and there’s an election in November. It’s rather simple. 

The happy talk spin on ABC was sponsored by Comcast, on CBS by Progressive insurance, and on NBC by Citi. Click on the links to let them know what you think. 

Partial transcripts are below. Click “expand” to read more. 

Good Morning America 
7/28/2022

7:03

GRAPHIC: Americans Brace for a Possible Recession 

REBECCA JARVIS: Good morning to you, Michael and that critical report, the nation’s GDP could show the second straight quarter of economic declines here in the United States. That is what some would call a recession And it follows on the heels of the fourth interest rate hike so far this year. This morning, as Americans brace for a possible recession, the Fed determined to fight historic inflation raising interest rates by another 0.75 percentage point. 

…

7:05 AM

JARVIS: The thing we are looking for later today, that GDP report that some economists believe could show the second straight quarter of declines in our economic activity. One way that people define a recession is not the official definition of a recession. The National Bureau of Economic Research is the arbiter, the semi official arbiter of recessions here in the United States and define a recession as a significant decline in economic activity spread out across the economy and lasting more than a handful of months. We’ve had recessions that didn’t have two back-to-back quarters of economic decline. Sometimes it does happen but the important thing to keep in mind, Robin, we’ve said it before, it can still feel bad out there even if it’s not technically a recession, Robin. 

CBS Mornings
7/28/2022
7:06 AM ET

NANCY CORDES: And this morning everyone is watching for the release of the second-quarter gross domestic product numbers. Typically if GDP falls for a second quarter in a row, that could signal a looming recession. But the Biden administration has been insisting that that is not the case this time around. That the economy is simply recalibrating after a post-pandemic boom. Nate? 

NATE BURLESON: Nancy, thank you. With more on the recession, CBS News business analyst Jill Schlesinger joins us right now to discuss that and also the Fed’s latest rate hike and what that means for everyone at home. 

…

7:08

BURLESON: You mentioned Federal Reserve chair Powell. He said we’re not in a recession, but you know, we’re looking at this and hearing about recession. It’s almost like a buzzword now. Are we in recession? 

JILL SCHLESINGER: I mean, look, we don’t know because the way we determine recessions is this place called the National Bureau of Economic Research, has something called the dating committee. They look at a lot of factors and say “After the fact here’s when a recession began, here’s where it ended.”  Here’s what Powell’s really worried about —  he’s saying everyone’s talking about recession, it’s getting ingrained. People are worried about inflation. We don’t want it to become a self-fulfilling prophecy. He’s saying that it’s sort of hard to square that we’re in a recession if the labor market is still pretty solid. We’ve had 2.7 million jobs since the beginning of the year. Unemployment rate is at 3.6 percent. At the end of the day, it doesn’t really matter.

Today
7/28/2022
7:09

HODA KOTB: Raising interest rates yet again. It means it will cost more to borrow money. But the question is will it be enough to stop runaway inflation and a possible recession?

…

GABE GUTIERREZ: The Federal Reserve is walking a tight rope here, trying to squelch inflation without plunging the nation into a recession. So far Wall Street has been positive. Main street, though, is having a difficult time. After the most aggressive interest rate hike since the early ‘90s, it’s still not clear if the changes will stave off recession. 

…

GABE GUTIERREZ: The White House and Fed chair Jerome Powell say they do not think the U.S. Is in a recession yet. And Wall Street liked the interest rate news, with the Dow Jones   finishing up 400 points. While this is the fourth rate hike this year, more are expected. The next likely coming in September. Now this morning, we’ll be getting the latest GDP numbers, which could be another indicator of just how close a recession may be.