Learn about what is a slowcession, where economic growth slows down, but an economic downturn is avoided. With a slowsession, or slow recession, the Federal Reserve’s plan to raise interest rates hopefully helps lower inflation without causing a recession. Cheap oil prices, less inflation, and a strong housing market, are possible reasons for a slowsession.
What is a slowsession?
First let’s make sure we understand what is a recession?
A recession is a time when the economy is not doing well and lots of people lose their jobs and businesses have trouble making money. A slowcession is similar, but the economy doesn’t get as bad as it does during a recession.
Some think a slowcession is more likely to happen in the U.S. this year than a full-blown recession. Even though the economy will face some challenges, like more unemployment and less growth, there are things that could help us avoid a full-blown recession.
For example, if inflation, which is when prices for things like food and gas go up, so it costs more money to buy things, is high, it can be hard for people to afford the things they need.
However, if inflation goes down and people keep spending money, it could help the economy not get as bad as a recession.
Many people are worried that a recession might happen this year, but some think it’s not a sure thing. They believe that if we’re lucky and the government makes smart decisions about how to handle the economy, we might be able to avoid a full-blown recession and just have a slowcession instead.