US President Joe Biden sought on Thursday to calm voters' anxiety about the state of the economy, saying it was not surprising that a slowdown occurred after data showed the economy contracted again in the second quarter of this year.
"It is not surprising that the economy is slowing while the Federal Reserve is working to bring down inflation," he said in a statement. "We are on the right track and we will emerge stronger and safer," he said in a statement.
Concerns about the economy have become the first political focus of US President Biden before the midterm elections on November 8, as his Democratic party's control of Congress is at stake, as Biden's popularity has fallen to a record low of 36%, according to a "Reuters" poll. Ipsos" (Reuters Ipsos);
The economy was at the forefront of voters' concerns with soaring groceries, gas and housing bills.
While the second consecutive quarterly decline in GDP meets a standard definition of a recession;
The White House says the broader conditions of the recession are still far from realizing given strong consumer spending and labor markets.
Biden remained upbeat about the outlook for the economy even as fears of a slowdown joined fears of inflation hitting a 40-year high.
In his statement, he indicated that the labor market is strong on a record and that consumer spending continues to grow.
New US Commerce Department data estimated that gross domestic product fell at an annualized rate of 0.9% in the fourth quarter, versus economists' expectations for a 0.5% rise.
On Wednesday, the Federal Reserve (the US central bank) raised the interest rate by another 3 quarters of a percentage point, raising the total interest rates since last March to 225 basis points.
Board Chairman Jerome Powell acknowledged the decline in economic activity as a result of the tightening of monetary policy.