Biden touts record U.S. small business creation

President Joe Biden is highlighting his administration's support for small businesses in America, just as new data released on Thursday showed the U.S. economy shrank in the first three months of the year, and faces threats from high inflation and rising interest rates.

The 1.4% quarterly decline in gross domestic product — the first contraction since the pandemic hit in 2020 -- is not likely a prelude to recession, economists say.

That may bring little comfort to Biden and Democrats, who face mid-term elections this year in which rising prices for food, energy and other essentials will be a major theme of Republican opposition.

Biden was touting the benefits of the American Rescue Plan on a White House live streamed event. "Last year, Americans applied to start 5.4 million new businesses," Biden said. "20% more than any other year on record."