U.S. economy shrank 0.9 percent last quarter, but the White House does not call it a recession
The U.S. economy shrank from April through June for a second consecutive quarter, further raising fears that a recession may be creeping soon.
The Commerce Department’s decline in the gross domestic product, also known as GDP, follows a 1.6 percent drop from January through March. Consecutive dropping quarters signal a recession, according to AP News.
However, The White House Council of Economic Advisors is looking at the current economic situation and does not see a recession.
“I think when it comes to the overall economy, what we’re trying to say is that the growth rate, whether its GDP or jobs, should be expected to slow as you move from the breakneck pace of 2021 to a more steady, stable pace that we’re hoping to achieve this year. But, the bottom line, is people don’t need GDP, they don’t need industrial production. What they care most about is the price of food, the price of gas, the quality of their job,” said Jared Bernstein.
Jared Bernstein says the White House admits food and fuel prices still have a long way to go before being affordable for the average American again.
Story via Paul Wiseman with AP News