United States: attention drawn from significant legislative progress by US President Joe Biden and his administration on policies to control inflation, reduce debt, and maintain America's competitive edge in an effort to ease a worrying new economic report Efforts were made to remove, which for one strengthened the case. recession.
To uncover the good, it was necessary to acknowledge the political tensions that are already present in the mid-term elections. Republican lawmakers have warned that a recession is about to begin, a claim that was disputed by Biden and his fellow Democrats, who preferred that people focus on two potential victories in Congress.
It was a perfect reflection of the relentless tug-of-war that has characterized the Biden administration, where any victory can be overshadowed by one blow and the news cycle moves more quickly than the margin of victory. This resulted in dialectical stories about the country's location.
In response, Biden highlighted the near-record low unemployment rate and signs of ongoing business investment in the economy. It's not like a recession for me, he said on Thursday.
In a statement, Biden said that "it is no surprise that the economy is slowing as the Federal Reserve acts to reduce inflation." "But despite the historic challenges we face globally, we are on the right track, and we will emerge stronger and more safely from this transition."
Republicans argued that the fact that the economy contracted for the second quarter in a row, at a time when inflation is at a four-decade high, was evidence of a "Biden recession."
The President applauded Congress's passage of a bipartisan US$280 billion package to support the US semiconductor industry, as well as reduce the cost of prescription drugs, address climate change, fund the IRS, minimize corporate Applauded the unexpected revival of the Democratic-only proposal to enact. taxes, and reduce losses.
Following Biden's lead, other White House officials dismissed GDP reports that showed the economy shrank at an annual rate of 0.9%.
When asked about the worrying GDP report, Brian Deez, director of the White House National Economic Council, said, "Where we are now, we are on the verge of doing really historic things that will help get the ball moving on the economy." " This is our main concern.
Treasury Secretary Janet Yellen acknowledged in a rare press conference that the primary concern of Americans is inflation, not the debate between Democrats and Republicans over whether the GDP report indicates the economy has entered recession.
The American people's "biggest concern is with inflation," Yellen told reporters, adding that they generally feel good about their ability to find a job and keep it.
Still, the Treasury secretary used some of his rhetoric when he claimed that growth was "slowing down", despite the fact that the GDP report indicated the economy has shrunk over the past six months.
The National Bureau of Economic Research, which may take some time to make its decision, is the final arbiter on whether a nation is in recession.
Contrary to Republican claims that it was an open failure brought on by Democratic policies rather than a complex effort by the world to recover from the coronavirus pandemic, Yellen described the recession as beneficial to the economy returning to normal after the pandemic.
The discussion rallied for new climate and drug pricing legislation, which Democrats have dubbed the "Inflation Reduction Act of 2022," as well as the semiconductor bill that is currently awaiting Biden's signature. Republican opponents argue that both bills will raise prices, despite the administration's claims that they will fight inflation.
We are in a recession, according to House Republican Minority Leader Kevin McCarthy, the government announced this morning, confirming what every American has been feeling for nearly a year. "This inflation was brought on by Democrat spending. And now they are again committed to the same failed strategy.
The Republican National Committee quickly nailed the report, calling it a sign of "Biden's recession" as other Republicans moved to seize the opportunity.
Even the White House acknowledges that the proposed legislation will not have an immediate impact on consumer prices or economic output, but it still believes that Biden and Democrats should be confronted by voters about problems affecting households' bottom lines. The solution will be seen as offered. ,
In an interview with the Associated Press earlier this year, Biden said that while he sees his mission as giving Americans a renewed sense of trust, the trust he wants to maintain and spread Continually decreasing as losses are still fresh in people's minds and wins are quickly forgotten.
Even though economists disagree about whether the US will experience a recession, voters have a strong consensus on it the state of the economy.
According to a June poll by the AP-NORC Center for Public Affairs Research, nearly eight out of ten Americans believed that the US economy was in poor shape, and about seven out of ten people disapproved of Biden's handling of the economy
As inflation continued to be a threat, consumer sentiment as measured by the University of Michigan started to deteriorate, with Democrats' confidence being relatively low.
The Federal Reserve has indicated that additional rate hikes are imminent, indicating that the fight against inflation and the ensuing political squabbles may last well into this year's November elections. The Fed recently moved sharply to raise interest rates in an effort to further slow the economy and reduce inflation.
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