The US economy has contracted for the second straight quarter, a milestone that would be viewed as an economic recession in many countries.
This is not the case in the US, which uses additional data to make that call.
But the contraction at an annual rate of 0.9% in the three months to July has drawn widespread attention as worries about the economy mount.
The prices of groceries, gasoline and other staples are rising at their fastest rate since 1981.
With the US Federal Reserve quickly raising borrowing costs to try to cool the economy and ease pricing pressures, fears are mounting that a recession is imminent — if it hasn’t already officially begun.
Amid falling public confidence, US President Joe Biden has sought to ensure the economy remains healthy, noting that the unemployment rate remains at a low 3.6% and the hiring rate remains high.
This week, ahead of the Commerce Department data, he told reporters that the economy “won’t go into recession.” That prompted his opponents in the Republican Party to accuse the White House of trying to redefine the term.
“Recession rebranding in the White House will not lessen the suffering of Americans,” they said.
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