If This Is a Recession, We Might Not Know for Months
Economy’s second-straight decline in output sparks debate—and the waiting game
As the Federal Reserve continues to raise interest rates in its fight against the highest inflation in more than four decades, economic indicators flash signs of a slowdown and questions abound over what is a recession and whether the U.S. has entered one.
U.S. gross domestic product fell by an inflation and seasonally adjusted annual rate of 0.9% in the second quarter, the Commerce Department said Thursday. It was the economy’s second-consecutive quarterly contraction, which is one definition of recession, though not the one used by the official arbiter, the National Bureau of Economic Research.