US GDP has fallen for two quarters in a row: as The Guardian notes, this is a formal sign of the start of recession in the economy. There is no official recognition of the recession yet, but pressure on Joe Biden’s administration continues to grow: the approval rating for his economic policies has reached its lowest point since he has been in office.

Over the last three months the US economy has again shown a decline, which has become an unofficial signal of the beginning of recession, writes The Guardian. Last Thursday, the US Department of Commerce reported that GDP declined by an average of 0.9% in the second quarter of 2022, compared to an average decline of 1.6% in the first quarter.

This news will be a major blow to Joe Biden’s administration in the run-up to the congressional elections, notes the publication. The Guardian reminds us that many White House officials have been careful to avoid talking about recession, insisting that many areas of the economy remain strong.

Last year’s rapid growth in US GDP led to inflation, which, in turn, prompted the Fed to raise its key rate, writes The Guardian. This had an impact on GDP: consumer spending and real estate investment declined and business slowed down. As The Guardian notes, two consecutive quarters of declining GDP are usually considered the beginning of recession in the economy. However, the National Bureau of Economic Research, which is the official arbiter of the onset of recession, has not yet given its verdict, as it seeks to consider other factors besides GDP. Meanwhile, pressure is mounting on the Biden administration, says The Guardian. The president’s approval rating for economic policy has now reached its lowest since he took office. “It’s no surprise that the economy is slowing amid the Fed’s actions to slow inflation. But even in the face of historic challenges, we are on the right track – and we will emerge from this transition stronger and in a safer position,” the publication quotes Joe Biden as saying.

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