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Economy shrinks as Fed hikes interest rates: White House economic advisor weighs in

There are new fears that a recession has begun with the release of a new gross domestic product report Thursday — it shows a 0.2% GDP decline in the second quarter, after a 0.4% drop in the first.

The report comes a day after the Federal Reserve announced its fourth interest rate hike of the year — three-quarters of a percentage point. That’s a move it hopes will slow inflation, but many worry will make it harder for middle and low-income workers to save and get the credit they need to operate businesses.

White House Council of Economic Advisors economist Heather Boushey joins host Jane Clayson to discuss the Fed rate hike.

This article was originally published on WBUR.org.

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