- August 1, 2022
- Posted by: Bastion team
- Category: World News
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Finance expert Daniel Roccato argued that consumers are unable to keep up amid what he called a “pay cut recession.”
Roccato made the argument on “Fox & Friends Weekend” on Sunday, three days after it was revealed that the U.S. economy shrank in the spring for the second consecutive quarter, meeting the criteria for a recession as record-high inflation and higher interest rates forced consumers and businesses to pull back on spending.
Gross domestic product, the broadest measure of goods and services produced across the economy, shrank by 0.9% on an annualized basis in the three-month period from April through June, the Commerce Department said in its first reading of the data on Thursday. Refinitiv economists expected the report to show the economy had expanded by 0.5%.
Recessions typically refer to two consecutive quarters of negative economic growth and Thursday’s GDP report revealed back-to-back declines in growth, bringing the economy to the technical criteria for one.
WHY IS INFLATION STILL SO HIGH, AND WHEN WILL IT START TO COOL?
Economic output already fell over the first three months of the year, with GDP tumbling 1.6%, the worst performance since the spring of 2020, when the economy was still deep in the throes of the COVID-induced recession.
Inflation hit a record level 9.1% in June.
(istock)
Roccato, a clinical professor of finance at the University of San Diego’s Knauss School of Business,…