US RECESSION WATCH — Second Quarter GDP is available in at detrimental 0.9%.
Joe Biden on Monday straight up denied the US goes right into a recession. He was mistaken.
“We’re not gonna be in a recession in my opinion,” Biden stated rattling off his speaking factors that the US goes to go from “fast progress to regular progress.”
The GDP shrank by 1.6 p.c within the first quarter of 2022. The second quart GDP launched right this moment was minue 0.9 p.c.
TRENDING: IT’S OFFICIAL: Second Quarter GDP Comes In at Minus 0.9 % — US OFFICIALLY ENTERS BIDEN RECESSION (Video)
The historic definition of an financial recession is 2 consecutive quarters of detrimental financial progress.
Whether or not the U.S. skirts recession will principally relaxation within the fingers of customers, who accounted for 68% of all financial exercise within the first quarter.
Mohamed A. El-Erian is without doubt one of the most revered economists on the scene right this moment.
On Thursday El-Erian responded to the detrimental GDP quantity for the second quarter.
Mohamed A. El-Erian: “That is an financial system that’s weakening at a a lot quicker fee than most individuals anticipated… Inflation is just not going to return down quick sufficient given how briskly the financial system is weakening and that’s going to place the Fed in the identical dilemma it’s been in.”
Through Squawk Field.
“That is an financial system that’s weakening at a a lot quicker fee than most individuals anticipated,” says @elerianm on the newest GDP knowledge. “Inflation is just not going to return down quick sufficient given how briskly the financial system is weakening and that’s going to place the Fed in the identical dilemma its been in.” pic.twitter.com/uwBAml3bVq
— Squawk Field (@SquawkCNBC) July 28, 2022