Recession Fears Rise Despite Strong Economy

Despite strong job growth under the Biden administration, recent economic data, particularly the rising unemployment rate, has fueled recession fears. Although the economy is not technically in a recession, the rapid increase in unemployment, as measured by the "Sahm Rule," suggests a recession might be looming. While some economists, including the creator of the Sahm Rule, believe the current situation is different, investors are reacting with concern, driving down stock prices. The Federal Reserve`s plan to raise interest rates to combat inflation is now seen as a potential trigger for a recession, raising the question of whether they acted too late.