In an attempt to fight inflation, the U.S. Federal Reserve has raised interest rates, warning that more big rate hikes are on the table if inflation will not cool. This has led to fears that a recession is on the horizon for the U.S. But what is recession? And why does it matter?
In this episode of Fiscally Savage, Dylan brings us a closer look at recession, one of the scariest words in economics. How is it measured? What does it mean for workers and businesses? And are we on the verge of entering one?
Show Highlights:
- [01:04] Why the US Federal Reserve is raising interest rates
- [02:24] The textbook definition of a recession
- [03:35] The COVID-19 recession as an example of a recession that does not conform to its textbook definition
- [03:59] The three factors that experts observe to determine whether or not there is a recession
- [08:16] The three factors that are indicative of a recession but do not necessarily cause it
- [12:12] Why recessions matter
- [13:56] Three tips for managing through a recession
- [18:02] How Dylan survived the 2008 financial crisis and thrived afterward
- [19:59] Closing statements
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