United States Two Consecutive Quarters Of Negative GDP Growth

The US GDP for the second fiscal quarter was eventually announced, and it was -0.9%. The results show negative growth for the second quarter in a row. Many analysts believe that this fits the broad definition of a recession.

The advanced estimate of the GDP for the first quarter was shown to be at -1.4%. However, that estimate has been revised to a negative growth of 1.6%.

Many analysts believe that the GDP’s second consecutive period of negative growth qualifies as a recession. Many important US officials, however, have distanced themselves from this concept.

President Joe Biden recently declared that he does not believe the United States will enter a recession. Janet Yellen, Treasury Secretary, reaffirmed the sentiment.

Fed Chair Jerome Powell concurred with the president during yesterday’s post-FOMC briefing, citing the solid job market as evidence that the US is not in recession.

The White House also released a briefing disputing the two negative quarter definitions of GDP. The briefing pointed to the National Bureau Of Economic Research (NBER), which considers other factors while making recession forecasts.

Many experts, however, have disputed top authorities’ remarks. Scion Capital founder Michael Burry accused the White House of attempting to minimize harm.

Furthermore, John Cochrane, Senior Fellow at Stanford University’s Hoover Institute, disclosed that the NBER frequently announces a recession after it has ended and has received all the data. They most likely do not have all the numbers yet to make a definitive forecast.

The recession could be a mixed bag for crypto investors. According to Gareth Soloway, an expert crypto trader and influencer, the market initially fell because of the recession fears. However, the prices rallied quickly because of the falling dollar and the decreasing likelihood of another Fed interest rate hike.

After the announcement, Bitcoin and ETH prices have not shown any massive movements either.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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