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Biden: No surprise economy slows as Fed tries to curb inflation

Regarding the data showing that the country’s economy contracted by 0.9 percent in the second quarter of the year, US President Joe Biden said, “While the US Federal Reserve (FED) is trying to reduce inflation, it is not surprising that the economy slowed down”.

In his written statement, Biden evaluated that the country’s economy entered technical recession by contracting by 0.9 percent in the second quarter after the first quarter of this year, contrary to expectations, according to the data released by the Ministry of Commerce today. Noting that employment rates in the country are at a historic peak, Biden commented, “While the FED is trying to reduce inflation, it is not surprising that the economy is slowing down.”

Pointing out that they are facing many difficulties in the economy due to the Covid-19 epidemic, Biden gave the message, “We are on the right track, we will come out of this transition period stronger and safer”.

Noting that 1 million jobs were created in the country only in the second quarter and consumer expenditures continued to increase, Biden said, “My economic plan is focused on reducing inflation without losing the economic gains we have achieved.”

US technically in recession

The U.S. Department of Commerce announced the leading figures for Gross Domestic Product (GDP) for the April-June period. Accordingly, GDP decreased by 0.9 percent annually in the second quarter of the year.

Contrary to expectations, the US economy, which contracted in the second quarter of this year, was expected to grow by 0.5 percent. The country’s economy shrank 1.6 percent in the first quarter of the year. Thus, the US economy technically entered recession by shrinking for two consecutive quarters.

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