Recession Fears Rise Despite Strong Economy

Despite strong job growth under President Biden, concerns about a potential recession are emerging. While the economy continues to add jobs and doesn`t meet the traditional definition of a recession, the rising unemployment rate has triggered the historically accurate "Sahm Rule" recession predictor.

Although some economists, including the rule`s creator, believe the current situation is different, investors are reacting with concern, driving down stock markets. This shift in perspective stems from a potential weakening economy, suggesting the Federal Reserve`s efforts to control inflation through interest rate hikes might need to be more aggressive than anticipated, potentially increasing the risk of a recession.