For the second consecutive quarter, the U.S. recorded negative gross domestic product (GDP) growth and entered an economic recession. According to Iowa Senator, Chuck Grassley, the Biden Administration was actively avoiding the term in the days leading up to Thursday’s announcement from the U.S. Bureau of Economic Analysis the nation’s GDP shrunk by 0.9 percent since the start of April.
He adds multiple factors contributed to the nation entering a recession, including inflationary pressures caused by government spending, workforce shortages, and more. However, Grassley says one issue stands out more than the others.
Grassley says fuel costs end up being passed down to consumers and influences the price of many products like food, electronics, and durable goods. He cites a recent example from a nationwide transportation firm.
The technical definition of recession is two consecutive quarters of declining GDP, but officials in the Biden Administration argue other factors, such as the 3.6-percent national unemployment rate and steady job growth, suggest the nation’s economy is not slowing like GDP figures show. Grassley made his comments Tuesday during his weekly Capitol Hill report.
