The White House administration and the leaders of the US financial bloc announced their refusal to consider the decline in the country’s economy for two consecutive quarters as a recession.
Earlier it was reported that US GDP in the second quarter of 2022, according to the first estimate of the Bureau of Economic Analysis of the country’s Department of Commerce, again fell by 0.9% on an annualized basis.
US President Joe Biden, commenting on the data on the decline in GDP, announced the expectation of a similar situation in the economy. According to him, the slowdown in the US economy is the result of last year’s recovery and the Fed’s efforts to combat inflation. In his assessment of the current situation, Biden did not mention a recession.
White House economic adviser Brian Deese has been criticized for refusing to consider a possible economic decline for two consecutive quarters as a recession. Dees urged reporters that a two-quarter contraction in GDP was not the technical definition of a recession. US leader’s press secretary Karine Jean-Pierre also avoided the word “recession” when describing the current economic situation.
The head of the US Federal Reserve Jerome Powell supported the position of the White House, mentioning the positive data on the level of employment in the country.
Finally, US Treasury Secretary Janet Yellen also spoke of “a necessary slowdown after rapid growth.”