Biden economic adviser previously defined recession as two consecutive quarters of negative growth
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A top member of President Biden's economic team previously acknowledged the definition of a recession was two consecutive quarters of negative growth.
"One percent growth isn’t a recession, which is typically defined as two consecutive quarters of declining growth," Jared Bernstein, a member of the White House Council of Economic Advisers (CEA), wrote in a column for Foreign Affairs magazine in September 2019.
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U.S. economic growth fell 0.9% during the second quarter, covering April through June, the Department of Commerce's advanced gross domestic product (GDP) estimate released Thursday showed. The report marks the second consecutive quarter of declining growth, meaning the U.S. has entered a technical recession, according to Bernstein's 2019 comments.
US enters technical recession as economy shrank 0.9% in Q2
The U.S. enters a recession following two quarters of negative GDP growth. FOX Business’ Edward Lawrence with more.
However, Bernstein and other White House officials have pushed back on that same technical definition in recent days in anticipation of the Commerce Department data release. Biden's economic advisers have instead pointed to the definition outlined by the National Bureau of Economic Research (NBER), a nonpartisan economic analysis group.
The NBER broadly defines a recession as a "significant decline in economic activity that is spread across the economy and that lasts more than a few months." In the past, the group has waited several months to officially declare that a recession has occurred.
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"Based on consumer spending, based on payroll employment, based on where the unemployment rate is, I think we can confidently say that these numbers that we’re posting are very much inconsistent with a recessionary call, given where we are right now," Bernstein told reporters on July 18.