White House Changing Definition of Recession, Will Take New 'Holistic' Look at the Situation
With The Washington Post blaring that “Big Tech is bracing for a possible recession,” the Biden White House is redefining the word. A recession is traditionally defined as two consecutive quarters in which the nation’s…
With The Washington Post blaring that “Big Tech is bracing for a possible Recession,” the Biden White House is redefining the word.
A Recession is traditionally defined as two consecutive quarters in which the nation’s Gross Domestic Product shrinks. A new report Thursday will assess the results of the second quarter. Shrinkage took place in the first quarter, and with inflation running at 9.1 percent, there’s not a lot of hope for economic good news.
As noted by Business Insider, economists Bloomberg surveyed believe growth will be a paltry 0.9 percent, but the Federal Reserve Bank of Atlanta’s GDPNow model pegs shrinkage at 1.6 percent.
“The big headwinds for consumers are price Inflation and higher interest rates. And Inflation could erode the excess savings consumers accumulated through the pandemic, especially if price increases continue to run ahead of wage growth,” Capital One CEO Richard Fairbank said Thursday, according to