The Biden administration is being accused of “redefining” a recession after the White House Council of Economic Advisers published a blog post explaining how experts determine when one is occurring.
“Official determinations of recessions and economists’ assessment of economic activity are based on a holistic look at the data – including the labor market, consumer and business spending, industrial production, and incomes,” the White House said in the blog post.
“Based on these data, it is unlikely that the decline in GDP in the first quarter of this year—even if followed by another GDP decline in the second quarter—indicates a recession.”
A gross domestic product advance estimate is due to drop on Thursday, local time, which could show the US economy contract for a second consecutive quarter.
The declaration of a recession is left to the National Bureau of Economic Research to make.