Recession? Or Business as Usual? – Video

Okay Catherine, what’s going on in the world? Are we in a recession? Yes. So last week we saw the stock market plummet and then bounce back just as quickly, it was all basically because of a jobs report that caused a widespread recession, investor fears. There were even calls for the Federal Reserve, which has been raising interest rates to curb inflation, to immediately lower them to prevent a recession since then, it’s become pretty clear that this isn’t the stock market crash of 1929 or the Great Recession of 2008, but it doesn’t really matter whether or not it’s an official recession on paper. Yes, inflation is coming down, prices are still high and you have to remember that your personal inflation rate is really going to be different than someone else’s. So if you have kids or high health care costs, you’re going to feel that pain from inflation a lot more than someone who’s single and has a lower cost of living. What investors and regular people like you and I can agree on is that it’s time for the Fed to cut rates when that happens. It’s likely that starting in September, it will become cheaper to borrow, like with your credit card or when you get a mortgage. But it’s going to be a while before people, especially low- and middle-income households, feel that relief in their budgets.