President Biden insisted the country is “on the right path” on Thursday even after the economy shrank for the second straight quarter and inflation rages at a nearly 40-year high.

Taking credit for record job growth, Biden said the slowing economy was actually a sign of a healthy cooling down after the post-pandemic boom that helped trigger global price increases.

“It’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation,” Biden said in a statement. “But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure.”

Biden planned to give a speech on the economy later Thursday.

The president spoke after federal officials said the gross domestic product shrank by 0.9% in the second quarter. It earlier went down by 0.4% in the first quarter.

Those reductions fit the layman’s definition of a recession although the White House counters that the rock bottom unemployment rates belie that claim.

The dip comes after the economy roared back to life following the COVID-sparked decline. Juiced by pandemic relief, the U.S. economy grew by an impressive 10.1% in 2021, leaving it vulnerable to an adjustment.

The boom has sent inflation soaring to an annual 9.1% rate, a level not seen in four decades.

The Federal Reserve is more worried about soaring prices than a looming downturn. It hiked interest rates by 0.75% for the second straight month on Wednesday.

Tighter monetary policy tends to slow down the economy and lower consumer demand, moves that should lower inflation.

But if the Fed keeps raising rates fast and GDP keeps shrinking, the economy could go from too hot to ice cold in a hurry.

©2022 New York Daily News. Visit nydailynews.com. Distributed by Tribune Content Agency, LLC.

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