US RECESSION WATCH — Second Quarter GDP comes in at negative 0.9%.
Joe Biden on Monday straight up denied the US is going into a recession. He was wrong.
“We’re not gonna be in a recession in my view,” Biden said rattling off his talking points that the US is going to go from “rapid growth to steady growth.”
The GDP shrank by 1.6 percent in the first quarter of 2022. The second quart GDP released today was minue 0.9 percent.
The historic definition of an economic recession is two consecutive quarters of negative economic growth.
Whether the U.S. skirts recession will mostly rest in the hands of consumers, who accounted for 68% of all economic activity in the first quarter.
Mohamed A. El-Erian is one of the most respected economists on the scene today.
On Thursday El-Erian responded to the negative GDP number for the second quarter.
Mohamed A. El-Erian: “This is an economy that’s weakening at a much faster rate than most people expected… Inflation is not going to come down fast enough given how fast the economy is weakening and that’s going to put the Fed in the same dilemma it’s been in.”
Via Squawk Box.
“This is an economy that’s weakening at a much faster rate than most people expected,” says @elerianm on the latest GDP data. “Inflation is not going to come down fast enough given how fast the economy is weakening and that’s going to put the Fed in the same dilemma its been in.” pic.twitter.com/uwBAml3bVq
— Squawk Box (@SquawkCNBC) July 28, 2022