What’s happening
Based on the latest numbers, the US is in a period of decline — possibly even a recession.
Why it matters
Recessions are historically marked by a period of widespread layoffs, bankruptcies, higher borrowing costs and turbulence in the stock market.
What’s next
Gather facts to protect your financial position. No one can predict the future, and it’s important to move calmly and deliberately.
Earlier this week, the Federal Reserve hiked interest rates again by 0.75 percentage points, in its fourth attempt to bring down runaway inflation. But economists and financial experts worry that a recession might be inevitable. Technically, the country is in a recession when gross domestic product, the value of all goods and services produced during a specific period, falls during two quarters back to back. And the results are in — GDP dropped by 1.6% in Q1 and 0.9% in Q2, according to the advanced estimate by the Bureau of Economic Analysis.
While all signs point to a recession, in the US, this is determined by the National Bureau of Economic Research — and it has not called a recession yet.
Right now, whether we can call this a recession or not feels like a game of semantics.
Ultimately, everyday Americans are struggling as prices continue to soar, the cost of borrowing rises and layoffs increase across the country. Here are some recent questions I answered for my So Money podcast audience about how best to prepare, save, invest and make smart money moves in these uncertain times.
First, what can we expect in a recession?
It’s always helpful to…