US gross domestic product (GDP) shrank at an annual rate of 0.9% in the second quarter of 2022, according to Commerce Department estimates. It is the second straight quarter of economic contraction, one informal indicator of a recession. The estimates came a day after the Federal Reserve hiked interest rates by .75 percent for the second time this year to tame inflation, which has been at a 40-year high for several weeks now. The interest rate hikes and now the GDP numbers have spooked many analysts into forecasting a recession.
US President Joe Biden has said that it is no surprise that the world’s largest economy is slowing down amid rising inflation. In a statement, US President accepted that the economy is slowing down but he said that they are on the right path and US will come through this transition stronger and more secure.