The US economy enters a recession.
This is what a report from the Bureau of Labor Statistics has determined this Thursday.
According to the document, between April and June, the economy of the superpower shrank for the second consecutive quarter, to a annual rate of 0.9%thus causing the GDP drop. Two symptoms of what is considered a technical recession.
This situation would be due to inflation and the global economic crisis stemming from the war in Ukraine.
Nevertheless, the US government does not share this diagnosis and considers continuing to have a robust economy.
The Federal Reserve (Fed), and many economists, do not consider having such a tragic economic situation either. The Fed hopes to achieve a “soft landing”, according to his statements, and achieve an economic slowdown that manages to curb skyrocketing prices without triggering a recession.
The report comes at a critical time, when consumers have already had to deal with high prices and rising borrowing costs.
Fear of this recession has raised public anxiety about the economy and is sending mixed signals.
Although the economy continues to grow, Americans are losing confidence in the economy. His assessment of economic conditions six months ahead has reached its lowest point since 2013according to the research group The Conference Board.
With the November mid-term elections approachingthe discontent of Americans directly hurts current President Joe Biden, whose public approval has declined.
According to the FiveThirtyEight political analysis body, which publishes the percentage of support and disagreement for Biden among the population on a daily basis, on July 28, 2022Biden would have the validation of a 39% support versus 55.8% rejection.
Therefore, it increases the likelihood of Democrats losing control of the House of Representatives and the Senate.
Add Comment