News of the back-to-back contractions heightened a debate in Washington over weather a recession had begun and, if so, whether President Joe Biden was to blame
WASHINGTON, DC July 28, 2022: US President Joe Biden during a meeting with CEOs to receive an update on economic conditions across key sectors and industries in the South Court Auditorium of the Executive Office Building on July 28, 2022. Image: Demetrius Freeman/The Washington Post via Getty Images
A key measure of economic output fell for the second straight quarter, raising fears that the United States could be entering a recession — or perhaps that one had already begun.
Gross domestic product, adjusted for inflation, fell 0.2% in the second quarter, the Commerce Department said Thursday. That drop followed a decline of 0.4% in the first quarter. The estimates for both periods will be revised in coming months as government statisticians get more complete data.
News of the back-to-back contractions heightened a debate in Washington over whether a recession had begun and, if so, whether President Joe Biden was to blame. Economists largely say that conditions do not meet the formal definition of a recession but that the risks of one are rising.
For most people, though, a “recession†label matters less than the economic reality: Growth is slowing, businesses are pulling back and families are having a harder time keeping up with rapidly rising prices.
“We’re absolutely losing momentum,†said Tim Quinlan, a senior economist for Wells Fargo. “Income gains at minimum have struggled to keep pace with inflation, and that’s what is chipping away at people’s ability to spend.â€
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