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EXPLAINER: Recession fears grow. Just how high is the risk?

Explaining-Risk of Recession
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WASHINGTON (AP) — Inflation is at a 40-year high. Stock prices are sinking. The Federal Reserve is making borrowing much costlier. And the economy actually shrank in the first three months of this year.

Is the United States at risk of enduring another recession?

For now, most economists don’t foresee a downturn in the near future.

Despite the inflation squeeze, consumers — the primary driver of the economy — are still spending at a healthy pace. Businesses are investing in equipment and software, reflecting a positive outlook. And the job market is still booming, with hiring strong, layoffs low and many employers eager for more workers. Still, recession risks are rising.



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