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. The "Sahm Rule," an economic indicator, suggests the US is currently in a recession based on the pace of unemployment increase. However, many economists, including the rule`s creator, believe this time is different due to the economy`s overall health. Nevertheless, investors are reacting with concern, causing stock market declines and increased volatility. The Federal Reserve`s plan to curb inflation by raising interest rates is now under scrutiny, with concerns that they might trigger a recession. The question remains whether the Fed`s actions will achieve a "soft landing" or if they have waited too long, potentially leading to an economic downturn.