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Avoiding a US economic recession spurred on by skyrocketing inflation is here and coming on more; the runaway wreck called the Biden administration cannot stop it.
Claims that a US economic recession cannot be stopped are evidenced by skyrocketing inflation that the Biden administration does not admit.
This economic downturn is supposed to manifest in several months, but some experts say it is here now. One of the reasons why the White House does not acknowledge it and says the economy is robust.
Fears of Recession Amid Skyrocketing Inflation
Vain attempts by the Federal reserve to tame the worst inflation in 40 years with higher interest rates, but more economists are warning the economy is slipping, reported Sputnik News.
According to Politico, growing worries about out-of-control inflation and the US central bank's aggressive use of traditional monetary instruments have stoked recession fears on Wall Street and Washington.
The president says an economic downturn during his term can't happen, but his policies have not improved. Wall Street is not convinced what the White House claims; instead, the opposite is expected, noted CNBC.
According to Dana Peterson, the chief economist at The Conference Board, claiming that recession can happen in the last quarter, mentioned by Politico. Slowing consumer spending, according to JPMorgan Chase's chief US economist Michael Feroli, a downturn could begin as early as this quarter.
Two consecutive quarters of negative GDP growth make it a downturn, coinciding with Joe Biden's term in office. It is further verified by the National Bureau of Economic Research that calls it a US economic recession should the economy slow down noticeably and last more than a few months, but skyrocketing inflation is ongoing.
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Again, this definition coincides with the events after president Biden started office, next comes the blame game after that. The US government verified a shrunken economy in the first quarter of 2022, but some say earlier.
US Department of Commerce reported a drop of 1.5% and a 1.6% contraction in the first quarter, with the Atlanta Fed's economic growth tracker focusing on the second-quarter contraction.
Fed Asserts Recession To Happen
Jerome Powell, the Chairman of the Federal Reserve, the central bank of the United States, spoke on the matter last June 29.
He contended that slowing growth while maintaining positive growth was one tactic for fighting inflation while talking at a European Central Bank event hosted in Portugal.
The Fed kept interest rates close to zero during the two years of the pandemic and used aggressive monetary tools to lessen inflated consumer prices.
Raising interest rates several times from March (1.75%) and the biggest since 1994, the Central Bank tried to resolve the current inflation, but nothing happened.
Additionally, the moves caused price spikes, which resulted in the benchmark S&P 500 stock index having its worst first-half performance since 1970.
President Joe Biden supported Powell's decision, and in an interview with the Associated Press, he claimed the US has no recession despite the report in the media. He denied his policies have brought on the recession.
He does not mention that inflation began in 2021 and worsened in 2022. Following the energy crisis caused by boomeranged sanctions, he called it Putin's price hike but was dismissed.
Many blame the US economic recession brought on by skyrocketing inflation brought on by the Biden administration for not admitting it caused all these problems.
In the November midterms, the democrats fear losing because of bungled management by the White House, said its critics.
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