Thursday, after new data showed that the economy had contracted for two quarters in a row, Vice President Joe Biden attempted to allay the concerns of the American people regarding the health of the economy.
Biden and other top White House officials highlighted several positive facts about the US economy, including the fact that employers are still hiring, the unemployment rate is at a 50-year low, and manufacturers are still investing.
According to Biden’s statements to the press, “That does not sound to me like a recession.”
During the midterm elections for control of Congress that will take place on November 8, concerns about the economy may prove fatal for the candidates supported by Vice President Joe Biden.
According to a poll conducted by Reuters and Ipsos, the President’s approval rating has hit an all-time low of 36 per cent. The economy is listed as the primary concern of voters, which is understandable given the rising costs of basic necessities such as food, gas, and housing.
Even though the GDP has fallen for two consecutive quarters in a row, which satisfies a standard shorthand definition of a recession, the White House, the Federal Reserve, and many economists believe that the broader conditions are not even close to being met, given the strength of consumer spending and job markets.
Aides to Biden attribute the slower growth to the Federal Reserve raising interest rates four times this year to curb decades-high inflation, as well as what they hope is a short-term trend of businesses slowing down on restocking their inventories after overcompensating for shortfalls earlier in the COVID-19 pandemic.
In an earlier statement, Vice President Joe Biden said, “It should not come as a surprise that the economy is slowing down as a result of actions taken by the Federal Reserve to bring down inflation.”
We are making progress in the right direction, and I am confident that we will emerge from this period of change even more robust and self-reliant.
In contrast to the expectations of economists, the latest data from the Department of Commerce suggest that the nation’s gross domestic product contracted at an annualized rate of 0.9 per cent during the most recent quarter.
The Federal Reserve reported on Wednesday that economic activity has decreased as it continues to raise interest rates to tame inflation that has reached 40-year highs. However, chairman Jerome Powell stated that there were too many points of strength for the United States to be in a recession.
Biden’s economic and spending priorities have been the target of criticism from members of the Republican Party, who base their criticism on the nation’s persistently high inflation rate and other economic weaknesses.
The opposition party has been extremely harsh in its criticism of the White House’s efforts to dispel rumours of an economic downturn.
On Thursday, it seemed as though Vice President Biden was close to achieving two victories in Congress about economic policy.
Senator Joe Manchin, a key centrist Democrat, made the announcement on Wednesday that he had reached a deal with top Democrats regarding comprehensive tax-and-spending spending legislation dealing with healthcare and climate change.
On Thursday, the House of Representatives passed sweeping subsidies for the domestic semiconductor industry to compete with Chinese and other foreign manufacturers. Both of these goals had been on Biden’s wish list for a long time.
While he was hosting a roundtable with business executives to discuss the robust status of the American economy, Vice President Biden received the news that the chips bill had been passed into law in its entirety.
The final tally of the vote was communicated to Vice President Biden by the President, who was met with applause after making the announcement.
However, even during a meeting with participants chosen by the White House, Vice President Biden received conflicting information regarding the state of the American economy.
The Chief Executive Officer of Bank of America Corporation, Brian Moynihan, stated that consumers in the United States are in a very strong position, with stable incomes, few delinquencies, and a robust appetite to consume; however, he noted that gas prices continued to be a burden.
Wendell Weeks, the Chief Executive Officer of Corning Inc., told Joe Biden that the sales of his manufacturing company to companies that make televisions and computers have slowed down, citing the consumer market as an example.
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Officials in the administration have also been working to dissuade people from prematurely declaring a recession to avoid a self-fulfilling prophecy as businesses and consumers, fearful that tougher times are ahead, cut back on spending and investment plans.
During the first half of the year, the number of new jobs added each month averaged 456,700, and domestic demand has been steadily increasing.
According to data released by the Labor Department on Thursday, the number of people filing their first claim for unemployment benefits in the state fell slightly.
Nevertheless, over the last month, the number has been trending higher, which suggests that the job market may also be slowing down.
