U.S. Economy Is Booming. GDP Grew At A 4.9% Annual Pace In The Third Quarter

 

CNBC: U.S. GDP grew at a 4.9% annual pace in the third quarter, better than expected 

* Gross domestic product, a measure of all goods and services produced in the U.S., rose at a 4.9% annualized pace in the third quarter, ahead of the 4.7% estimate. 

* The sharp increase came due to contributions from consumer spending, increased inventories, exports, residential investment and government spending. 

* While the report could give the Fed some impetus to keep policy tight, traders were still pricing in no chance of an interest rate hike when the central bank meets next week.

The U.S. economy grew even faster than expected in the third quarter, buoyed by a strong consumer in spite of higher interest rates, ongoing inflation pressures, and a variety of other domestic and global headwinds. 

Gross domestic product, a measure of all goods and services produced in the U.S., rose at a seasonally adjusted 4.9% annualized pace in the July-through-September period, up from an unrevised 2.1% pace in the second quarter, the Commerce Department reported Thursday. 

Economists surveyed by Dow Jones had been looking for a 4.7% acceleration in real GDP, which also is adjusted for inflation.  

Read more ....  

WNU Editor: Of course the US economy will boom if you are doing this .... Biden Administration Runs Third-Largest Budget Deficit In History (Zero Hedge). And this .... Defense Spending Boosts US Economy With Fastest Rise Since 2019 (Bloomberg). 

U.S. Economy Is Booming. GDP Grew At A 4.9% Annual Pace In The Third Quarter 

U.S. economy accelerated to a strong 4.9% rate last quarter as consumers shrugged off Fed rate hikes -- Politico 

The US economy grew at a blistering rate despite high interest rates -- CNN  

U.S. GDP up 4.9% in third quarter, beating expectations -- UPI  

US economy: GDP grew rapidly in the third quarter of 2023 -- Business Insider  

US Economy Roars in the Third Quarter -- Fiscal Times  

US economy grows at fastest pace in nearly two years -- BBC

US economy grows at fastest pace in nearly two years in third quarter of 2023 -- The Guardian

Are Dozens Of Major U.S. Banks About To Have Their Credit Ratings Downgraded?

 

CNBC: Fitch warns it may be forced to downgrade dozens of banks, including JPMorgan Chase 

* Fitch Ratings cut its assessment of the banking industry’s health in June, a move that analyst Chris Wolfe said went largely unnoticed because it didn’t trigger downgrades on banks. 

* But another one-notch downgrade of the industry’s score from AA- to A+ would force Fitch to reevaluate ratings on each of the more than 70 U.S. banks it covers, Wolfe told CNBC. 

* “If we were to move it to A+, then that would recalibrate all our financial measures and would probably translate into negative rating actions,” Wolfe said.

A Fitch Ratings analyst warned that the U.S. banking industry has inched closer to another source of turbulence — the risk of sweeping rating downgrades on dozens of U.S. banks that could even include the likes of JPMorgan Chase. 

The ratings agency cut its assessment of the industry’s health in June, a move that analyst Chris Wolfe said went largely unnoticed because it didn’t trigger downgrades on banks. 

But another one-notch downgrade of the industry’s score, to A+ from AA-, would force Fitch to reevaluate ratings on each of the more than 70 U.S. banks it covers, Wolfe told CNBC in an exclusive interview at the firm’s New York headquarters.  

Read more ....  

WNU Editor: Here is an easy prediction. The U.S. government and the banks are not changing their fiscal/debt/credit policies. A downgrade will happen, the only question that needs to be answered is when.

U.S. Loses Top Credit Rating. Downgraded To AA+ From AAA

 

CNBC: Fitch downgrades U.S. long-term rating to AA+ from AAA 

* Fitch Ratings cut the United States’ long-term foreign currency issuer default rating to AA+ from AAA. 

* The agency had placed the country’s rating on negative watch in May, citing the debt ceiling fight in Washington. 

* “The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” Fitch said. 

* U.S. stock futures opened lower Tuesday evening after the downgrade.

Fitch Ratings downgraded the United States’ long-term foreign currency issuer default rating to AA+ from AAA on Tuesday, pointing to “expected fiscal deterioration over the next three years,” an erosion of governance and a growing general debt burden. 

“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” said Fitch. 

Read more ....  

WNU Editor: When you keep on raising your debt ceilings and your interest payments are now reaching one trillion billion dollars a year, everyone's credit (including the credit of the US government) is going to decline. 

The Fitch report is here .... Fitch Downgrades the United States' Long-Term Ratings to 'AA+' from 'AAA'; Outlook Stable 

Update: US officials are outraged .... "Arbitrary... Outdated!" - Yellen Outraged After Fitch Cuts USA's AAA-Rating (Zero Hedge). More here .... Surprise US credit rating downgrade draws White House ire (Reuters). 

U.S. Loses Top Credit Rating. Downgraded To AA+ From AAA  

Fitch downgrades US credit rating, citing mounting debt and political divisions -- AP  

Fitch cuts U.S. credit rating to AA+ as budget deficits swell -- Bloomberg

Fitch downgrades US credit rating from AAA to AA+ as country’s fiscal deficits swell -- The National 

US loses top credit rating -- RT  

And then there were 9: Here are the remaining AAA countries after Fitch stripped the U.S. of its top credit rating -- Forbes

Are Certain Nations And Global Business Interests Transferring Their Assets And Commitments Away From The U.S.?

The Hill: Is there a worldwide run on the Bank of the United States of America?  

In talking this week with a friend about the United States seemingly imploding from within across multiple sectors, my friend stressed: “It’s not just from within. There is a run on the United States from certain nations and business interests around the world. Just like there was a run on banks after the collapse of Silicon Valley Bank, many nations are either thinking about — or actually proceeding with — transferring at least a portion of their allegiance, assets and commitments from the ‘Bank of the U.S.’ to the ‘Bank of China’ or elsewhere.” 

This was not just some person sitting on a porch casually talking about current events while whittling a stick waiting for his Social Security or pension check to hit the mailbox. This was a former high-level U.S. government official, now a CEO, someone who sits on the boards of directors for multiple companies. He has massive real-world and business experience and believes the United State may be on the verge of collapse. 

Read more ....  

WNU Editor: It was not only the financial and economic sanctions the US imposed on Russia that was a wake-up call for the global community on what the US could do if they run afoul of US policies, but it was also the US threatening countries and global business interests that they could be next if they continue to do business with Russia or Russia-linked businesses. 

No one wants their monies controlled in such a manner. Hence the move away from US banks and financial institutions.

U.S. Federal Reserve Is Projecting A Recession This Year

Politico: Fed economists project recession this year, in potential blow to Biden  

The economic outlook is always difficult to foretell with any confidence. 

Federal Reserve economists believe that recent banking turmoil will trigger a mild recession later this year, a potentially ominous sign for President Joe Biden as he heads into an election campaign. 

Staff members at the central bank, who brief policymakers before interest rate decisions, had long expected GDP growth to slow this year in the wake of the Fed’s fight against inflation. But last month they upped the odds of a downturn, according to the minutes of the Fed’s March 21-22 meeting. 

Just a couple of weeks before the meeting, two regional lenders — Silicon Valley Bank and Signature Bank — collapsed after depositors pulled out billions of dollars in cash, sending tremors throughout the industry. 

Their projection was for “a mild recession starting later this year, with a recovery over the subsequent two years,” according to the minutes, released Wednesday. That would spark a jump in unemployment. They estimated the economy would fully recover by 2025.  

Read more ....  

WNU Editor: I have doubts that running the money printing press and accumulating massive debts is going to stop and/or minimize the recession that is coming. Unfortunately, the US government has a different point of view .... IMF urges Biden administration to cut spending, help Fed bring down inflation (Yahoo News).

Major U.S. Bank Has Collapsed In Largest US Bank Failure Since The Great Recession

 

Daily Mail: Silicon Valley Bank is SEIZED by regulators after run on deposits caused lender to collapse in largest US bank failure since Great Recession - as panic over tech industry slowdown spreads to Wall Street 

* Silicon Valley Bank was shuttered by financial regulators on Friday morning 

* The bank in Santa Clara, California had been the 18th largest bank in the US 

* FDIC says insured deposits up to $250,000 will be available by Monday 

Silicon Valley Bank has been seized by financial regulators after a run on deposits tipped the bank into collapse, in the largest US bank failure since the Great Recession in 2008. 

California state regulators shuttered the bank on Friday, and the Federal Deposit Insurance Corporation (FDIC) immediately took control of the bank's $209 billion in assets and $175.4 billion in deposits. 

The bank based in Santa Clara, California had been the 18th largest bank in the US, and primarily catered to the tech startups and wealthy entrepreneurs of Silicon Valley.  

Read more .... 

WNU Editor: This collapse involves $209 billion in assets and $175.4 billion in deposits. Of the $174 billion in deposits, $151.5 billion are uninsured!!!!! Not surprising. Contagion fears are growing .... Silicon Valley Bank meltdown sparks contagion fears: ‘We found our Enron’ (NYPost). 

Update: People are panicking .... Silicon Valley Bank's Manhattan branch calls COPS on investors trying to pull their cash out as Boston tech CEO with $10M in bank describes 'worst 18 hours of my life': Lender is SEIZED by regulators in largest US bank failure since Great Recession (Daily Mail) 

Update #2: Other banks are facing problems .... Yellen says Treasury Department 'carefully' watching crisis at 'a few banks' (Yahoo Finance). See the video below: 

 

 Major U.S. Bank Has Collapsed In Largest US Bank Failure Since The Great Recession  

Silicon Valley Bank Fails After Run by Venture Capital Customers -- New York Times  

Silicon Valley Bank is seized by US after historic failure -- AP  

Banking regulators shutter SVB, move quickly to avert crisis -- Reuters  

Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis -- CNBC  

Silicon Valley Bank collapses after failing to raise capital -- CNN  

Game Over: FDIC Shutters Silicon Valley Bank, Appoints Receiver -- Zero Hedge  

Analysis: Californian tech bank SVB sows global fear about rising cost of money -- Reuters 

Explainer: What caused Silicon Valley Bank's failure? -- Reuters

U.S. Hits Its Debt Limit. "Extraordinary Measures" Being Implemented To Avoid Default

 

Reuters: U.S. government touches debt limit 

WASHINGTON (Reuters) - The U.S. government was due to hit its $31.4 trillion borrowing limit on Thursday, amid a standoff between the Republican-controlled House of Representatives and President Joe Biden's Democrats that could lead to a fiscal crisis in a few months. 

Republicans, with a newly won House majority, aim to use the congressionally mandated federal debt ceiling to exact spending cuts from Biden and the Democratic-led Senate. 

Thursday's deadline will have little immediate effect, because Treasury officials are prepared to begin employing emergency cash management measures to stave off default. More serious risks will emerge closer to June, when the government approaches the so-called X date, beyond which the Treasury would run out of emergency maneuvers. 

Ahead of that deadline, there was no sign that either side was willing to bend.  

Read more ....  

WNU Editor: Here we go again. 

U.S. Hits Its Debt Limit  

U.S. hits debt limit, prompting "extraordinary measures" to avoid default -- CBS/AP  

America Hit Its Debt Limit, Raising Economic Fears -- DNYUZ/New York Times  

Debt ceiling fight set to "cross the Rubicon" -- Axios  

What is the US debt ceiling and what happens if it isn’t raised? -- The Guardian

US Trade Deficit Shrinks Sharply

Shipping containers are unloaded from ships at a container terminal at the Port of Long Beach-Port of Los Angeles complex, amid the coronavirus disease (COVID-19) pandemic, in Los Angeles © Thomson Reuters  

Reuters: U.S. trade deficit shrinks sharply as imports tumble 

WASHINGTON (Reuters) - The U.S. trade deficit contracted by the most in nearly 14 years in November as slowing domestic demand amid higher borrowing costs depressed imports. 

The trade deficit decreased 21.0% to $61.5 billion, the lowest level since September 2020, the Commerce Department said on Thursday. 

The percentage decline in the trade gap was the largest since February 2009. Imports tumbled 6.4% to $313.4 billion, with goods dropping 7.5% to $254.9 billion. Consumer goods imports were the lowest since December 2020.  

Read more ....  

Update: U.S. trade deficit shrinks 21% to 26-month low as imports tumble (Market Watch)  

WNU Editor: Can we now call it a recession.

Regional US Federal Banks Are Saying The U.S. Is In A Recession

Zero Hedge: St. Louis Fed Quietly Finds US Is Now In A Recession 

In recent weeks, we have seen a burst of unexpected truthiness out of various regional Fed banks, a sharp contrast to the constant barrage of prevarication out of the Federal Reserve. 

First, it was the Philadelphia Fed which effectively revised what was according to the BLS a gain of 1.1 million jobs to just 10,500 jobs, meaning that the Fed was looking at erroneously overstated, arguably politicized data, as it unleashed its burst of 75bps rate hikes in June... which happened just as June jobs number turned negative. 

 Then, a few days later, the Cleveland Fed suggested that the Fed's entire inflation view is wrong, relying on core CPI (and PCE) data that is woefully, even dangerously, delayed - in some cases lagging market data by up to 12 months, and suggesting that rent inflation - a core component of shelter and OER inflation which is arguably the most important component of "sticky" US service inflation - is actually far lower if measured correctly.  

Read more ....  

WNU Editor: It looks like the campaign to force the US Central to stop raising interest rates (and to actually bring it down) has started.

The U.S. Economy Is Not As Strong As Some Like To Believe

Small businesses in various states are struggling to pay their rent, a new report shows, with rent delinquency up 37 percent on the month. Compounding concerns is the fact that several states, such as New York, and California, are well over the already-high national average  

Daily Mail: Nearly 40% of small businesses in the US failed to pay rent in October - with more than HALF saying their prices have been hiked at least 10% over the past six months 

* The findings, published Tuesday by Boston-based business tracker Alignable, illustrate the stark effect inflation is having on everyday Americans 

* The survey of 4,789 small business owners saw more than half of respondents say their rent is at least 10 percent higher than it was six months ago 

* If you go back seven months, the majority said rents have increased 20 percent 

* The study found that roughly 37 percent of small businesses - almost half of all Americans working in the private sector - were left unable to pay rent in October 

* Compounding concerns is the fact that several states, such as New York, and California, are already well over the already-high national average 

Small businesses in various states are struggling to pay their rent, a new report shows, with rent delinquency at nearly 40 percent this month. 

The findings, published Tuesday by Boston-based business tracker Alignable, are raising more than eyebrows, as they illustrate the stark effect inflation is having on everyday Americans. 

The survey of 4,789 randomly selected small business owners saw more than half of respondents say their rent is at least 10 percent higher than six months ago.  

Read more ....  

WNU Editor: The backbone of any economy is small business. You have a serious problem when 40% cannot pay the rent..

Bloomberg Now Saying A US Recession Is 100% Certain Within The Next 12 Months

The economic downturn is likely to last for eight months  

Bloomberg: Forecast for US Recession Within Year Hits 100% in Blow to Biden 

(Bloomberg) -- A US recession is effectively certain in the next 12 months in new Bloomberg Economics model projections, a blow to President Joe Biden’s economic messaging ahead of the November midterms. 

The latest recession probability models by Bloomberg economists Anna Wong and Eliza Winger forecast a higher recession probability across all timeframes, with the 12-month estimate of a downturn by October 2023 hitting 100%, up from 65% for the comparable period in the previous update. 

The forecast will be unwelcome news for Biden, who has repeatedly said the US will avoid a recession and that any downturn would be “very slight,” as he seeks to reassure Americans the economy is on solid footing under his administration.  

Read more .... 

Update: US recession is now 100% CERTAIN within the next 12 months, according to new model from Bloomberg - but Bank of America CEO says spending and savings data show US consumer is 'healthy' (Daily Mail)  

WNU Editor: The message from President Biden is the opposite. That the economy is strong (see below):

 

Stock Market Declines Have Resulted In Trillions Lost For American Investors

CNBC: Stock market losses wipe out $9 trillion from Americans’ wealth  

* Americans’ holdings of corporate equities and mutual fund shares fell to $33 trillion at the end of the second quarter, down from $42 trillion at the start of the year. 

* With major market indexes falling further since July, experts say losses from financial markets could total $9.5 trillion to $10 trillion.

* Economists say the drops could add pressure to Americans’ balance sheets and possibly hurting spending. 

Falling stock markets have wiped out more than $9 trillion in wealth from U.S. households, putting more pressure on family balance sheets and spending. 

Americans’ holdings of corporate equities and mutual fund shares fell to $33 trillion at the end of the second quarter, down from $42 trillion at the start of the year, according to data from the Federal Reserve. 

With major market indexes falling even further since early July, and the bond market adding further losses, market experts say the current wealth losses from financial markets could total $9.5 trillion to $10 trillion.  

Read more ....  

Update: ‘True carnage’: Stock-market selloff wipes $13 trillion in market cap off broad U.S. benchmark (Market Watch)  

WNU Editor: The "experts" see no hope for the rest of 2022 .... Investors believe aggressive Fed will keep stock market down for the rest of 2022, CNBC survey shows (CNBC).

US Fed Rate-Hikes Are Adding Trillions To The National Debt

Yahoo Money: Fed rate hike could add $2.1 trillion to federal deficits, analysis finds 

The Federal Reserve hiked interest rates by 0.75% on Wednesday, making an aggressive move to tame inflation that could have other side effects — including a possible recession. 

The rate increase could also explode federal deficits even further in the years ahead. A new analysis from the budget hawks at The Committee for a Responsible Federal Budget (CRFB) predicts this week’s rate hike alone will add $2.1 trillion to government deficits over the next decade. 

That’s on top of a series of hikes we’ve already seen this year that are already set to add trillions more to the deficit in coming years. The central bank concluded its two-day policy meeting Wednesday by suggesting it could hike rates further in the months ahead.  

Read more ....  

Update #1: Another jumbo Fed rate hike poised to add $2.1T to national debt, CRFB says (FOX News)  

Update #2: Expected Interest Rate Hike Will Add $2 Trillion to the Deficit (Reason)  

WNU editor: The biggest loser with this interest rate increase is the US Federal Government. With $31 trillion in debt, every 1% increase in the Fed rate adds $300 billion in interest costs. 

So far in fiscal 2022, where interest have been low for the most part, the US Treasury has already spent $471 billion to just pay-off the government's interest payments. 

And it is going to get worse, as Fed Chairman Powell has already indicated .... WRAPUP 6-Fed delivers another big rate hike; Powell vows to 'keep at it' (Reuters).

U.S. Federal Reserve Raisines Interest Rates. Markets Crash

 

Daily Mail: Fed Chairman Jerome Powell warns it will be 'very challenging' to tame inflation without steep job losses across the US economy after hiking interest rates to 3.25% - the highest level since 2008 

* Fed Chair Jerome Powell admitted on Wednesday that achieving a soft landing will be 'very challenging' 

* Federal Reserve on Wednesday raised its policy rate 0.75 points to 3.25%, the highest since 2008 

* US central bank also projected rates will hit 4.4% this year and 4.6% in 2023 - higher than expected 

* Fed is attempting to cool down the economy to battle soaring inflation, which stands at 8.3% 

* Higher rates mean costlier borrowing, including mortgages and business loans, slowing growth 

* But by tamping down the economy, the Fed raises the risk of triggering job losses and layoffs 

The Federal Reserve has issued another super-sized increase to interest rates in a move intended to fight inflation, but which deepens the risk of a sharp economic downturn and job losses. 

At the end of its two-day policy meeting on Wednesday, the US central bank raised its policy rate by 75 basis points for the third time, to a range of 3 percent to 3.25 percent, the highest level since the 2008 financial crisis. 

The Fed is attempting to cool down the economy in order to tame rampant inflation, which remains stubbornly high at 8.3 percent -- but as interest rates climb, the path to a so-called 'soft landing' is narrowing.  

Read more ....  

Update #1: Fed attacks inflation with another big hike and expects more (AP)  

Update #2: Fed goes big with latest rate hike; Powell vows to 'keep at it' (Reuters)  

WNU Editor: Bottom line. Unemployment rates are going to climb in 2023. Expect more interest rate hikes, but only after the mid-term elections. And as for inflation, that mess is only going to get worse .... Fed-funds rate could end up as high as 5%, says overseer of $1.3 trillion in assets (Market Watch).

US Stocks Have Lost A Staggering $7.6 Trillion This Year

Bloomberg: Bernstein Quants Say $7.6 Trillion US Bear Market Has More to Go 

(Bloomberg) -- US stocks are nursing losses of $7.6 trillion this year, but if history is any guide, they’re likely in for even more declines before the bear market is over, according to Sanford C. Bernstein quantitative strategists. 

An analysis of the 15 major routs since 1937 shows peak-to-trough price drops averaged 28%, deeper than the current drawdown of 20%, the team led by analyst Ann Larson wrote in a note on Sept. 13. 

The average bear market lasted seven-to-eight months and included three rallies with returns of 9% and lasting about 22 days on average -- in line with this year, they said. 

“We believe this bear market has more room to run because most major global synchronized selloffs have ended with a moderate inflation/low growth regime, and we are not there yet,” Larson said.  

Read more ....  

WNU Editor: It was another negative day for the markets today (link here). This crash, if it continues, is going to impact all of us (if not already).

A Field Day For Memes On Today's U.S. Inflation Numbers And Stock Market Crash

lmao how's everybody feeling so far? #cpi #inflation pic.twitter.com/c0YKMqNAUn

— Arbitrage Andy (@ArbitrageAndy1) September 13, 2022

WNU Editor: As funny as the memes are, the real world is even funnier (see below):

WHITE HOUSE SPOKESPERSON KARINE JEAN-PIERRE SAYS SHE DOES NOT SEE ANY EVIDENCE OF THE NASDAQ BEING DOWN 5% TODAY

— Stalingrad & Poorski (@Stalingrad_Poor) September 13, 2022

Nancy the GOAT… pic.twitter.com/HydSD7OH50

— Wall Street Silver (@WallStreetSilv) September 13, 2022

THE LEGEND DOES IT AGAIN pic.twitter.com/EW8m40hWoM

— Inverse Cramer ETF (Not Jim Cramer) (@CramerTracker) September 13, 2022

dow down 1000 pic.twitter.com/an9Bx1sFdI

— Tom (@TradingThomas3) September 13, 2022

Hat tip to Zero Hedge for the memes.

Gallup Says Inflation Now Causing Hardship For A Majority In The U.S.

Gallup: Inflation Now Causing Hardship for Majority in U.S. 

* 56%, up from 49% in January, say rising prices are causing hardship 

* More middle- and upper-income Americans are experiencing hardship 

* Cutting back on spending, canceling travel are most common actions 

WASHINGTON, D.C. -- A majority of Americans, 56%, now say price increases are causing financial hardship for their household, up from 49% in January and 45% in November. The latest reading includes 12% who describe the hardship as severe and 44% as moderate. 

The results are based on an Aug. 1-22 web survey that interviewed over 1,500 members of Gallup's probability-based panel.  

Read more ....  

WNU Editor: Only 56% are saying that inflation is causing hardship for them?!?!?!? I would think it would be much higher.

Is The U.S. Economy Facing A 'Whopper' Of A Recession In 2023?

 

CNBC: Worst is yet to come: Economist Stephen Roach says U.S. needs ‘miracle’ to avoid recession 

Negative economic growth in the year’s first half may be a foreshock to a much deeper downturn that could last into 2024. 

Stephen Roach, who served as chair of Morgan Stanley Asia, warns the U.S. needs a “miracle” to avoid a recession. 

“We’ll definitely have a recession as the lagged impacts of this major monetary tightening start to kick in,” Roach told CNBC’s “Fast Money” on Monday. “They haven’t kicked in at all right now.”  

Read more ....  

Update: Johns Hopkins economist predicts ‘whopper’ of a recession in 2023 — and points to one key economic reading the Fed is missing (Fortune)  

WNU Editor: I have been a follower of John Hopkins economist Steve Hankey for years. I have found his predictions on interest rates to be always correct, and his "Hanke-Cofnas Gold Sentiment Score" is a must go place for those who like gold (link here). His twitter account is also a must follow (link here).

U.S. Economy Now In A Recession After Second Straight GDP Decline

US gross domestic product shrank 0.9 percent in the second quarter, following a decline of 1.6 percent decline in the first quarter. Two consecutive quarters of shrinking GDP is the classic definition of a recession  

Daily Mail: America goes into RECESSION after second straight quarter of negative growth but Biden insists: 'We are on the right path' 

* US gross domestic product shrank 0.9% last quarter, the Commerce Department said on Thursday 

* It marked two consecutive quarters of GDP decline, the classic and informal definition of a recession 

* But White House has insisted that the alarming data doesn't mean the economy is in a recession 

* Technically, a recession has to be officially declared by private research group's panel of economists 

* 'We are on the right path and we will come through this transition,' Biden said in response to the grim news 

* Critics furiously blasted the administration for 'deflecting blame' and trying to 'redefine a recession' 

President Joe Biden is facing fierce criticism for refusing to acknowledge that America has entered a recession, after the US economy met the classic definition of a downturn by contracting for the second straight quarter. 

The Commerce Department confirmed in a report on Thursday that US gross domestic product shrank 0.9 percent in the second quarter, following a decline of 1.6 percent decline in the first quarter.  

Read more ....  

WNU Editor: President Biden has a different take, saying the economy is "on the right path" .... Biden rejects recession label, declares nation is 'on the right path' despite shrinking economy (USA Today). More here .... Joe Biden denies recession despite GDP decline in consecutive quarters (NYPost). 

U.S. Now In A Recession After Second Straight GDP Decline  

GDP fell 0.9% in the second quarter, the second straight decline and a strong recession signal -- CNBC  

US economy shrinks for a 2nd quarter, raising recession fear -- AP  

US economy contracts again, fueling recession fears -- CNN  

Recession semantics aside, the new GDP numbers are bad -- Axios

Is The U.S. In A Recession? White House Now Redefining What A Recession Is

Biden Chief Gaslighter @BrianDeeseNEC: "In terms of the technical definition, [two negative quarters of growth] is not a recession." pic.twitter.com/NpBNW5yvru

— Tom Elliott (@tomselliott) July 25, 2022

Daily Mail: Has COVID gone to his head? Blase Biden dismisses recession fears - despite record inflation and nation bracing for second quarterly drop in GDP this THURSDAY 

* White House is insisting that two quarters of economic decline isn't a recession - even though it meets the technical definition of one 

* ‘We're not coming into recession in my view,' Biden said 

* 'In terms of the technical definition, it's not a recession, the technical definition considers a much broader spectrum of data points,' Brian Deese told CNN 

* GDP data for second quarter is out on Thursday 

* Some predicting another quarter of decline 

* White House trying to get ahead of the numbers 

* On Wednesday, Fed Reserve expected to increase interest rates again resident 

Joe Biden on Monday said the country is not going into a recession, doubling down on his administration's insistence that two quarters of economic decline isn't one - even though it meets the technical definition. 

‘We're not coming into recession in my view,' he told reporters during a virtual meeting at the White House. 

'The employment rate is still the lowest we've had in history. My hope is we go from this rapid growth to steady growth. And so we'll see we'll see some coming down. But I don't think we're going to, God willing, I don't think we're gonna see a recession,' he said. 

Read more .... 

 Update #1: Biden Team’s Take on ‘Technical Recession’: It’s Not a Real One (Bloomberg)  

Update #2: White House economic adviser slammed for trying to redefine 'recession' on CNN: 'Gaslighting Americans' (FOX News) 

WNU Editor: The American public is going to learn this Thursday if the U.S. is in a recession. By the reaction of White House officials today, it looks like they already know what are the economic indicator numbers.