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The United States is in recession, foreign exchange MT4.MT5 Baidu Finance
发布时间：2022-08-25 浏览：119
China Daily, July 31. According to the British "Guardian" report, the U.S. Department of Commerce announced on July 28 that the annualized gross domestic product of the United States fell by 1.6% in the first quarter, while the second quarter fell by 0.9%, indicating that the United States into a recession that is not officially confirmed.
The bad news will deal a severe blow to a Biden administration preparing for a tough midterm election. White House officials have tried to quell rumors of a recession, saying the economy remains strong.
The newly released second-quarter data contrasted sharply with the 6.9% growth rate in the fourth quarter of 2021, when the U.S. economy was recovering from the new crown epidemic.
The GDP data for the second quarter reflects the ongoing changing economic environment in the United States. Consumer spending, the economy's biggest driver, slowed in the second quarter but remained positive, growing at an annualized rate of 1 percent. Residential fixed-asset investment (ie, commercial housing construction) fell by 14%, while business inventories were dragging down GDP growth.
The U.S. consumer price index (CPI) rose 9.1% through June amid rising energy, food prices and housing costs.
While parts of the U.S. economy remain strong, especially the job market, the coronavirus pandemic continues to disrupt global supply chains, and the military conflict between Russia and Ukraine has sent energy prices soaring.
Rapid economic growth in the United States led to the worst inflation in 40 years, and the Federal Reserve decided to raise interest rates sharply to suppress prices. The day before the latest GDP data was released, the Federal Reserve announced a further 25 percentage point increase in the benchmark interest rate to curb inflation.
On July 27, Federal Reserve Chairman Powell said that the U.S. economy has not fallen into recession, and the Fed is ready to continue raising interest rates to bring prices down, which will inevitably slow economic growth and affect the job market. He also said that price stability is what drives the entire economy.
Panic over the economic outlook has sparked a global stock sell-off, with some economists predicting a recession is on the horizon. In June, the Financial Times polled nearly 70 percent of top academic economists who believed the U.S. economy would fall into recession in 2023.
Two consecutive quarters of negative GDP growth heralded a recession in the U.S. economy. However, whether the U.S. economy is in recession or not will ultimately need to be announced by the National Bureau of Economic Research (NBER). In NBER's final ruling, the GDP data has a large influence, and broader economic indicators such as the industry market are also taken into account.
Andrew Hunter, senior U.S. economist at Capital Economics, an independent macroeconomic research firm, said that the U.S. GDP fell by 0.9% in the second quarter, but it did not mean that the U.S. economy was in recession, and it is expected to appear in the second half of the year. A mild rebound.
Meanwhile, the Biden administration remains under pressure. Biden's overall approval ratings and his support for his economic policies have fallen to their lowest levels in office as recession fears mount and consumer confidence suffers. In a statement, Biden said the slowdown in the economy is not surprising as the Fed moves to lower inflation. He also argued that in the face of historic global challenges, the U.S. economy remains on a virtuous track, stronger and safer in the future.
Republicans countered that the GDP report showed that Democrats' reckless economic policies were destroying the U.S. economy.