Recession Fears Rise Despite Strong Economy

Despite strong job growth under the Biden administration, recent economic data has fueled recession fears. Although the economy is not currently in a recession by the formal definition, an increase in the unemployment rate has triggered the "Sahm Rule," a historically accurate recession predictor. While some economists, including the rule`s creator, believe the current situation is different, investors are reacting with concern, driving down stock prices. The shift in sentiment stems from concerns that the Federal Reserve`s efforts to combat inflation by raising interest rates may now be too aggressive, potentially leading to a recession.