Biden shrugs off recession talk, talks up fighting inflation

WASHINGTON (AP) — President Joe Biden and his administration went all out Thursday to play down a troubling new economic report that added to the evidence of a recession, trying to pull focus instead to major legislative progress on measures to tame inflation, reduce debt and preserve America's competitive edge.

The desire to accentuate the positive reflected the political tensions that are already playing out in the runup to the midterm elections. Republican lawmakers are sounding the alarm that a downturn has already started, a claim challenged by Biden and his fellow Democrats who wanted the public to instead focus on a pair of likely wins in Congress.

Thursday reflected the constant push-and-pull that has defined the Biden administration, in which any triumph can be overshadowed by a setback and the news cycle moves at a faster pace than victory laps. This created dueling narratives about where the country is.

Republicans said the report showing the economy shrank for the second consecutive quarter was evidence of a “Biden recession” at a time when inflation is at a four-decade high.

Biden, in turn, cited near-record-low unemployment and signs of continued business investment in the economy. He declared, “That doesn’t sound like recession to me.”

The president celebrated congressional passage of a $280 billion bipartisan package to boost the U.S. semiconductor industry and the sudden resurrection of a Democrats-only proposal to lower prescription drug costs, tackle climate change, fund the IRS, establish a minimum corporate tax and cut the deficit.

Other White House officials took Biden's cue and shrugged off the gross domestic product report showing the economy shrank at an annual rate of 0.9%.

“Where we are right now is we’re on the cusp of doing really...