Joe Biden shrugs off recession talk, declares US ‘on the right path’
- The US economy contracted for a second straight quarter between April and June, according to official data
- It added fuel to recession fears and creating a headache for President Joe Biden ahead of midterm elections
The desire to accentuate the positive reflected the political tensions that are already playing out in the run-up to the midterm elections. Republican lawmakers are sounding the alarm that a downturn has already started, a claim challenged by Biden and his fellow Democrats who wanted the public to instead focus on a pair of likely wins in Congress.
It reflected the constant push-and-pull that has defined the Biden administration, in which any triumph can be overshadowed by a setback and the news cycle moves at a faster pace than victory laps. This created duelling narratives about where the country is.
Republicans said the report showing the economy shrank for the second consecutive quarter was evidence of a “Biden recession” at a time when inflation is at a four-decade high.
Biden, in turn, cited near-record-low unemployment and signs of continued business investment in the economy. He declared on Thursday: “That doesn’t sound like recession to me”.
“It’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation,” Biden said in a statement. “But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure.”
