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Brian Deese, Assistant to the President and Director of the National Economic Council, speaks during a meeting where President Joe Biden appeared virtually with his economic team in the South Court Auditorium on the White House complex in Washington, Friday, July 22, 2022. (AP Photo/Andrew Harnik)

OAN NEWSROOM
UPDATED 1:20 PM PT – Monday, July 25, 2022

The Biden administration is downplaying concerns of a recession ahead of this week’s GDP numbers that are expected to show an economic downturn. In a statement Monday, the White House questioned how economists determine a recession while alleging the US economy is “transitioning” from ‘”fast growth” to steady and slow growth.

The US GDP shrank 1.6 percent in the first quarter and the Atlanta Fed expects it to fall another 2.1 percent in the second quarter. However, President Biden’s officials are claiming two quarters of negative growth does not indicate a recession although it does. The Bureau of Economic Analysis will release its advance estimate of second quarter GDP on Thursday, July 28.

Meanwhile, former Treasury Secretary and Obama administration economic adviser Larry Summers blames a possible upcoming recession on high government spending.  In an interview Sunday, Summers said the Biden administration borrowed too much money over the past two years. As a result, the US national debt surged above $30 trillion.

“I think there is a very high likelihood of recession when we’ve been in this kind of situation before,” he stated. “Recession has essentially always followed when inflation has been high and unemployment has been low.”

Summers said the US economy may face high inflation and no growth for a while.  The US government is set to release second quarter GDP figures later this week and if it is negative that would mean the country is officially in a recession.

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