“The American economy — powered by working families — continues to be resilient in the face of historic challenges,” Biden said in a statement. “While last quarter’s growth estimate was affected by technical factors, the United States confronts the challenges of COVID-19 around the world, Putin’s unprovoked invasion of Ukraine, and global inflation from a position of strength.”
The contraction came as a surprise, as economic forecasts projected growth of roughly 1%, presenting a fresh challenge for Biden and Democrats heading into the November midterm elections. Republicans seized on the report, charging that it shows Biden is leading the country into an economic recession. Biden said Republicans are seeking to fight inflation and other economic ills by raising taxes on “middle class families,” citing a plan put forth by Senator Rick Scott of Florida, who leads Senate Republicans’ campaign committee for the November midterm elections.
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