Projected GDP contraction prompts recession concerns, messaging battle
Janet Yellen – Treasury Secretary says: “This is not an economy that’s in recession. But we’re in a period of transition.”
Treasury Secretary Janet Yellen and members of the Biden Administration are out in force, making the case that the economy is strong and we are not headed toward a recession.
Jared Bernstein – White House Economic Adviser says: “if you look at the strength of the labor market, if you look at the strength of consumer spending, you would conclude that where we are right now remains solidly within expansion.”
Why are they doing this? The Commerce Department will release initial GDP calculations Thursday, and some economists predict it will reveal a contraction for the second quarter in a row. Two consecutive negative quarters is one of the informal definitions of a recession.
So that, topped by executives like Elon Musk and Jamie Dimon saying an economic downturn is coming, is not what democrats want just before the midterm elections.
Sen. Rick Scott, R-Fl says: “So you’ve got families that are having to choose gas or food. You’ve got people putting off their retirement, you’ve got people taking second jobs, people coming out of retirement because they can’t afford this.”
The National Bureau of Economic Research decides if we’re in a recession. They define a recession as quote “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.”
For more on that check out Simone Del Rosario’s word on the street.
But regardless of what the definition is, for better or worse, in sickness or in health, politicians who are married to their party will be talking a whole lot about the economy this week. Straight from DC, I’m Ray Bogan.