The Bureau of Economic Analysis reported yesterday morning the US economy contracted 0.9% during the second quarter. Inflation, rising interest rates and supply chain problems continued following a 1.6% decline in economic activity in the first quarter.
Since the beginning of economic data processing, the accepted definition of a recession was two consecutive quarters of economic contraction. However, the Federal Reserve Chairman and the Biden Administration say the USA is not in a recession. Those two have created a very unique situation: highest inflation rate in 41 years and a shrinking economy. That never happened before. If they do not raise interest rates, inflation will continue. If they do raise interest rates, the economy will continue to contract. This is a historic situation and all created because the Federal Reserve printed so much new money and the government gave it away, encouraging people not to work and now millions refuse to work as they figure out ways to live on less income. The economy is contracting because manufacturers cannot get the parts they need nor can they get the employees they need to grow their business.
The UN said yesterday the first shipload of Ukraine's grain will leave Ukraine today and two more vessels Saturday.