“Doesn’t look like a recession”
President Biden on Thursday tried to calm Americans’ concerns about the strength of the economy.
Biden and top White House officials highlighted several positive developments about the US economy, including high hiring rates, the lowest level of unemployment in 50 years, and investments by industries.
“This doesn’t look like a recession to me,” Biden told reporters.
Anxiety about the economy could sink Democrats during the midterm elections on November 8, when control of Congress is at stake.
The president’s approval rating has fallen to a record low of 36%, according to a Reuters/Ipsos poll, and the economy is among voters’ top concerns as food, gas and housing bills rise.
While the second consecutive quarterly drop in GDP meets a standard definition of a recession, the White House, the Fed and many economists believe that the general conditions are nowhere near being met, given strong consumer spending and market strength. labor.
Biden advisers attribute the slower growth to the Fed raising interest rates four times this year to curb the highest inflation in decades, and as businesses briefly slow down to restock inventories.
“It’s no surprise that the economy is slowing as the Federal Reserve moves to reduce inflation,” Biden said in an earlier statement.
“We are on the right path and we will come out of this transition stronger and safer,” he said.
