The GDP for the second financial quarter of the US was finally released to be -0.9%. The data shows a second consecutive quarter of negative growth. According to many experts, this meets the general definition of a recession.
The advanced estimate of the GDP for the first quarter was shown to be at -1.4%. However, that estimate has been revised to a negative growth of 1.6%.
Is The US In a Recession?
The second consecutive negative growth displayed by the GDP meets the criteria of a recession for many experts. However, many key US officials have been distancing themselves from this definition. President Joe Biden recently stated that he does not see the US going into a recession. The sentiment was reaffirmed by Treasury Secretary Janet Yellen.
In yesterday’s post-FOMC conference, Fed chair Jerome Powell agreed with the president and cited the strong labor market as the indicator that the US is not in recession.
The White House also released a briefing disputing the two negative quarter definitions of GDP. The briefing pointed to the National Bureau Of Economic Research, which takes other factors into account while making any recession forecasts.
