Why Recessions May Be Inevitable

America has experienced at least 30 recessions throughout history, dating back as early as 1857. Some experts believe that they have become an inevitable part of the economic cycle that fluctuates between periods of expansion and contraction. Nonetheless, certain measures can still be taken to make recessions less likely. As the nation’s authority on monetary policies, the Federal Reserve plays a critical role in managing recessions. So why do recessions happen and what can the Fed do about it? Watch the video to find out.

Right now? let’s say by year end, i’d say about 50/50. in june 2022, the world bank slashed its global growth can be completely sure that we or our families are not classes, like the value of your house or the value of rate, where people really fear that they could lose a this is an opportunity to buy this asset that’s now on so why do recessions happen and are they an

Inevitable that’s spread across the economy and lasts more than when economists talk about the economy overheating, and nearly every recession since world war ii saw the have to start bidding up wages. as they start paying positive feedback between wages moving higher, pushes inducing a recession and raising interest rates, that and eventually you’d have inflation running

Away and economy, particularly if people have borrowed to buy when that happens, people find out that they’re not as thought that you were, you cut back on your spending. demand in the economy, and it slows the economy down, these are the things that, unfortunately, we cannot throughout covid and others that we’ve seen through the i do think recessions are part of our

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Business cycle. and as long as that keeps happening, you’ll eventually as the nation’s authority on monetary policies, the recession. one is to steer the economy so we don’t get the second is to pay close attention to the financial careless securitization on the part of wall street. recession. but a successful soft landing is extremely that they can apply onto the breaks

That’s enough to difficult to get into that really, really narrow zone. in a really wide, spacious, open field versus trying to address. and so, you know, to a certain extent, we do people expect that the bond market expects interest inflation is controlled, it cuts interest rates back in the long term, that’s indicative that a recession a lot of people look at some of

The manufacturing indices 50, a lot of people say, okay, the manufacturing side well, if consumer sentiment and consumer confidence goes diversify your holdings of assets to make sure that hypergrowth firms that are leveraging the credit market deep and not too long, but in scenarios where we are we need to get to a point where they get back to fair picker. it’s very hard

To buy stocks in a bull market, reload your portfolio, to buy the stocks that you’ve this notion that somehow we need to cleanse the system you know, recessions cause job loss and every job loss do you want to take a new job or do you want to maybe financial life in a much better way.

Transcribed from video
Why Recessions May Be Inevitable By CNBC

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