Biden says U.S. economy will not enter recession just days ahead of GDP release

On Thursday morning, Americans will learn if the economy experienced two consecutive quarters of the GDP shrinking, which is traditionally the definition of a recession. President Joe Biden said Monday that he does not expect the U.S. economy to enter a recession, just days before the release of second-quarter local gross domestic product (GDP) data. 

"In my view, we will not go into recession. We will move from this rapid growth to sustained growth," Biden told reporters after first quarter figures showed a shrinking GDP. 

The Biden administration explained that what is technically called a "recession" is not necessarily what is taking place. At stake for the administration is winning a political messaging battle with Republicans over the effectiveness of Biden's policies amidst a post-pandemic recovery, the administration said in its message, Bloomberg reported.

Biden's Treasury Secretary Janet Yellen noted Sunday that the U.S. economy is "slowing," but maintained that the data doesn't herald a recession. "Even if that [second-quarter-GDB growth] number is negative, we are not in a recession now," Yellen said. 

"I'm not saying we will definitely avoid a recession, but I think there is a path to keep the labor market strong and inflation down," she stressed.

NOW - Biden: "We're not going into a recession." pic.twitter.com/KMCKN1gf7g

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U.S. GDP numbers in the second quarter will be revealed Thursday and are expected to rise slightly, after a negative first quarter (-1.6 % in annual projection, the preferred measurement in the country, which projects 12-month growth in the conditions at the time of the study), AFP reported.