Is America in a recession? Let’s have a detailed look at the matter. The U.S economy had a huge drop of almost 0.9% in the last three months. This is the second time in a consecutive quarter that the economy got affected. GDP or known as Gross Domestic Product decreased at an annual rate of 1.6% in the first quarter. The American recession can be seen as two consecutive drops in the economy in the quarter that is considered a recession. A non-profit, non-partisan organization called the National Bureau of Economic Research will conduct a thorough investigation which will include six economists to determine the American Recession in which a lot of factors will come into play.
The White House has pushed back all the allegations that say about the American Recession 2022 which they would as this would affect the mid-elections. President Biden looked into the matter and saw the surge in job growth along with foreign business investment and declared that America still has a strong and stable economy.
Treasury Secretary Janet Yellen noted on the appearance at NBC’s Meet The Press and stated that the two consecutive quarterly drop in the economy is considered a recession but creating 40,000 jobs a month tells the story otherwise it’s no doubt that the economy is in crisp condition. The GDP report showed that the business has been retched and borrowing from the federal reserve has become very expensive which means there is less money to invest and this could affect the job opportunities given by the country. Retailers had a load of inventories to work through so they spent less and the housing business also known as real estate was hyped up during the pandemic, the hype has died down due to the rise of mortgage rates. However there is a bright side to all of this, wages are rising and as a result, people are spending quite a luxurious time in hotels and restaurants. Overall income has increased but the fear of recession still lurks in Great America as the Fed continues to raise the interest rates in order to fight the high inflation.
The White House is assuring people that the two consecutive drop in the economy doesn’t automatically mean that the economy is in recession. With the midterm elections coming close the White House is paying a lot of attention to every detail that leads to recession and the Americans who are struggling financially but the cost of so many things is skyrocketing and with the interest rate increasing by the Feds many Americans are getting affected by this. A majority or 65% of registered voters said that they believe that the country is already in recession as they took part in the recent Morning Consult/ Political poll.
Fed Chairman Jerome Powell and other policymakers have acknowledged that with so much that has been affected by the two consecutive drops and many Americans are experiencing economic pain, the key for this economy to stay stable is to not lose too many jobs in that way stability can come back.
Is America in a Recession?
President Biden looked into the matter and saw the surge in job growth along with the foreign business investment and declared that America still has a strong and stable economy.
Who is a finance minister of America?
Janet Yellen is a finance minister of America.