THE UNITED STATES IS IN A RECESSION!! (OR IS IT?! WATCH TO FIND OUT)

Fed Chair Powell: ‘I do not think the US is currently in a recession’ Federal Reserve Chairman Jerome Powell said Wednesday that the U.S. economy is performing “too well” to be in a recession. “I do not think the U.S. is currently in a recession. And the reason is, there are just too many areas of the economy that are performing, you know, too well,” Powell said Wednesday on CNBC. “It’s true that growth is slowing, for reasons that we understand,” Powell said. But he said that the labor market is “very strong,” even as the U.S. recovers from the COVID-19 pandemic.

The US isn't in a recession because the definition of 2 quarters of negative GDP growth rate is no longer the accepted definition by the US government and academics. The authority to determine recessions is given to the National Bureau of Economic Relations (NBER), which goes on a monthly basis and uses like 20 indicators to make a determination. They determined a recession for one month during covid before the fed stepped in and ended the recession by stimulating the economy. The biggest thing people associate recessions with is job losses, but currently unemployment is insanely low and there is a labor shortage. There aren't enough people willing to work current jobs, which is the opposite of what happens in recessions. It makes for an extremely interesting macroeconomic climate that we are in today. Not stagflation, and not like the great recession.

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