Recession Looms as U.S. Economy Goes From Bad to Worse

Recession fears grew as the U.S. economy shrank for a second consecutive quarter, which is a common metric used to define a recession. Gross domestic product dropped an annualized 0.9 percent after falling 1.6 percent in the first quarter, Bloomberg reported. Inflation is still skyrocketing, too, and Americans are spending at a slower pace even as the unemployment rate remains low. In an attempt to cool inflation, the Federal Reserve raised interest rates by 0.75 percentage points for the second time this year. Fed Chair Jerome Powell maintains that the economy is not in a recession. Some economists agree, with the chief economist at Moody’s Analytics saying, “We’re not in recession, but it’s clear the economy’s growth is slowing.”