US economy is not sinking into Recession said, Joe Biden. Inventories are accumulated and consumers have restrained purchases. Joe Biden, Janet Yellen the treasury secretary, and Jerome Powell the federal reserve chairman have dismissed inflation as transitory.
Joe Biden and other top officials are denying the state of the Recession:
They are convincing everyone that the US economy is not in a Recession. The people should not judge the economy on the basis of GDP and Inflation they said.
Joe Biden said in his statement that “There is going to be a lot of chatter today on Wall Street and among pundits about whether we are in a recession or not. But if you look at our job market, consumer spending, and business investment. We see signs of economic progress in the second quarter as well”.
On Thursday, when the GDP figure was released, Joe Biden supported the strong labor market. He said in his statement that the nation is in the right direction and will come through this conversion more secure and strong.
Joe Biden denied the state of the Recession. He further said in his statement that “Let me point out that GDP growth and price stability are two of the three goals of economic policy. The third is full of employment.”
Recession increases unemployment that affects the American population:
During the Recession, negative growth and high inflation affect nearly all Americans. When unemployment increases in the Recession it affects only the extra 3% or 4% of the American population, especially those who lose their jobs. For judging economic performance, growth and inflation are the best factors. As all Americans feel higher prices daily. If there will be no growth then there will be no opportunities for American households.
In the four decades, it is happening for the first time the economic growth is negative, and inflation is also proceeding towards two digits. During the Recession period of 1991, 2001, 2008, and 2020, economic growth was negative. But still, the inflation was in the 2% to 3% range or less.
The economic analyst pointed out that if Biden tries to convince the Americans that we are not in a recession. The economy is not growing which implies that the economy is stagnant.