By Hardik Wasanwal
While negative growth for two consecutive quarters is considered bearish, this is not the official definition. A non-profit, nonpartisan organization called the National Bureau of Economic Research determines whether the U.S. The economy is in recession. An NBER committee made up of eight economists makes that determination and a number of factors go into that calculation.
The White House has pushed against calling the current economy a recession. There is no doubt that the economy is going to play a role in the mid-term elections.
President Biden cited record job growth and foreign trade investment as a sign of strength in the economy. "It doesn't sound like a recession to me," Biden concluded.
However, there were bright spots. Wages were increasing and people were traveling outside to eat in restaurants. Total income increased.
The GDP report showed that businesses had layoffs. Undoubtedly, borrowing has become more expensive with the increase in interest rates by the Federal Reserve. So there is less money to invest. The main concern is whether this will start to impact job growth.