Sign the US economy is in recession despite the lessened GDP decline registered in the second quarter of this year. The White House continues to deny that the president's economic policies have brought about a serious economic downturn.
White House Denies Recession
Since the beginning of 2022, the United States has been experiencing a severe economic contraction, as evidenced by inflation, resulting in sky-high fuel and consumer prices, culminating in higher interest rates, reported Sputnik News.
Joe Biden appears to be out of touch because the GDP contraction is not acknowledged despite Americans' economic hardships.
The second quarter GDP decrease statistics from the US Commerce Department have also been rectified to represent a narrower economic slump than was reported earlier.
Numerous evaluations recognize two successive quarters of negative GDP expansion as the technical definition of an economic slump. Even if the data is updated, the economy is still not as presented to be, noted CNBC.
After having experienced GDP downturns in the first and second quarters, the US economic system is predicted to share the worst half-year since the pandemic in 2022, with a gross decline in GDP of 1.6% from the initial half of 2021.
The White House does not welcome indications of a US economy weakened by poor management and experiencing the worst recession in 40 years.
The president and Jerome Powell, the head of the Federal Reserve, find this intolerable. Both indicate high spending and low unemployment rates, which are ordinary for economies experiencing an economic slowdown.
Because too many sectors of the economy are doing well, according to Powell, the US is not experiencing high inflation with lesser GDP decline.
"This is a very strong labor market," he said.
The market shouldn't be in an economic crisis if this type of thing occurs. Even before the November 2022 midterm elections, Democrats were being crushed by the economic crisis, which made them terrified. Party advisers fret that President Joe Biden's poor job approval cannot advance his policy platform.
Middle-class Woes Worsens
Americans have recently been feeling the effects of decades of rampant inflation, constantly complaining about rising food and fuel prices, among other topics.
Biden is playing the blame game and saying it's the Russian special operation in Ukraine causing the price hikes despite the raised prices that were already happening during November 2021, citing VOA News.
Following the US decision to stop buying Russian oil this summer, regular US fuel prices attained record levels, starting to cause the domestic gasoline supply to collapse and international oil market price increases.
The cost of gas dropped slightly after Washington decided to rescind the federal gasoline tax, instructing states to follow suit at the state level.
Republicans, for their part, attribute the historically high inflation rate to Democratic policies and gargantuan spending, including COVID relief last spring. According to experts, the US economy is in a recession, but Joe Biden says otherwise, citing a minor GDP decline because it will get worse.