US enters recession, consumers fear the consequences

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 contracted for the second consecutive quarter, at a annual rate of 0.9%thus causing the GDP drop. Two symptoms of what is considered a technical recession.

This situation is due to inflation and the world economic crisis derived from the war in Ukraine.

However, 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 expects to achieve a “soft landing”, according to his statements, and achieve an economic slowdown that manages to stop the skyrocketing prices without triggering a recession.

The report comes at a critical time, when consumers have already had to deal with the high prices and rising borrowing costs.

The fear of this recession has raised public anxiety about the economy and is sending mixed signals.

Despite the fact that the economy continues to grow, Americans are losing confidence in the economy. Your assessment of economic conditions six months ahead has reached its lowest point since 2013according to the research group The Conference Board.

With the November midterm elections approachingthe discontent of the Americans directly harms the current president Joe Biden, whose public approval has diminished.

According to the political analysis organization FiveThirtyEight, which publishes daily the percentage of support and disagreement for Biden among the population, on July 28, 2022Biden would have the validation of a 39% support against 55.8% rejection.

It therefore increases the Democrats likely to lose control of the House of Representatives and the Senate.