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The Washington Post, CNN, The New York Times and others on Thursday embraced the White House’s definition of a recession after GDP numbers showed consecutive quarters of negative growth as the US economy plunges into recession.
Various media headlines frame the news as “fueling fears of a recession” despite the economy slipping into a technical recession after Thursday’s gross domestic product contracted 0.9 percent year-on-year from April to June .
“The US economy shrinks again in the second quarter, rekindling fears of a recession,” headlined the Washington Post. The report acknowledges that the numbers have “often signaled a recession”.
Similarly, the The Bharat Express News report on the news said the second-quarter numbers “raised fears that the nation is approaching a recession.”
Consecutive quarters of declining GDP are an informal, but not definitive, indicator of a recession.
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The CNN front page headline described the news as crossing a “symbolic recession threshold,” and the report also used “fueling fears of a recession.” The report describes the technical definition of a recession as the “unofficial” definition.
“That drop marks an important symbolic threshold for the most widely used – albeit unofficial – definition of a recession as two consecutive quarters of negative economic growth.”
A Business Insider story Thursday headlined: “Current GDP numbers don’t tell us if we’re in a recession — and we won’t know for sure until we’re already in the middle of a crisis,” the GDP numbers said. clarity” on the state of the US economy.
“The US economy shrank 0.9% in the second quarter, after a 1.6% decline in the first quarter. Two consecutive quarters of contraction are often used as abbreviations for a recession, but the situation is more complicated,” he said. insider.
Several White House officials appeared on television over the past week to get ahead of the negative GDP report and attempt to redefine the general definition of a recession. Media, such as the The Bharat Express News and CNN, also seemed to embrace the talking points of White House officials.
Brian Deese, director of the National Economic Council, told CNN on Monday that the GDP report would be “inherently retrospective.”
“Certainly in terms of the technical definition, it’s not a recession,” Deese said. “The technical definition takes into account a much broader spectrum of data points.”
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The New York Times report on the second consecutive quarter of negative GDP growth said it “fueled fears” of a recession in their heads. However, the piece noted that it could be a signal that one has “already begun.”
“A key measure of economic output fell for the second quarter in a row, raising fears that the United States might be slipping into recession — or perhaps it had begun,” the report said.
Politico’s report of the news labeled it a “new headwind” for President Biden, saying it “presented a tantalizing opportunity for Republicans to declare that the economy under President Joe Biden is now in recession.”
The outlet reported that the US economy met just one of many criteria of a recession.
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Biden said Thursday’s GDP report was “no surprise” after saying earlier in the week there would be no recession.
“After last year’s historic economic growth — and the recovery of all the private sector jobs lost during the pandemic crisis — it’s no surprise that the economy is slowing as the Federal Reserve tries to cut inflation” Biden said in a statement. “But even as we face historic global challenges, we are on the right track and will come through this transition stronger and safer.”