Possible Recession Looming Amid Inflation Spike

Tags: Currents Economy, Unemployment, US, US. Politics, Wall Street

Currents News Staff

Investors are on edge as the Federal Reserve is headed for rough waters. The central bank is debating whether to raise the interest rate by ¾ of a percentage point. That hasn’t happened since 1994. The goal is to cool down the economy and tame inflation. President Joe Biden says that’s his top economic priority.

“Jobs are back but prices are still too high,” Biden said. “COVID is down, but gas prices are up. Our work isn’t done.”.

Without many options to fight price hikes or gas prices, Biden instead touted ultra-low unemployment numbers and some economic recovery from the pandemic. 

“I’ve never been more optimistic about America than I am today,” said Biden.

Plus, a key inflation reading showed a small glimmer of hope on Tuesday. It revealed a slight slowdown in rising prices. So what can you do to protect your money? Financial experts say: continue to invest in your 401k and retirement accounts.

“Don’t panic,” said Financial Expert Suze Orman, “and the reason I say that is – how many times have we seen the market go down?”

The next steps depend on your financial situation and how much time you have left before retirement.

“If you’re somebody out there living paycheck to paycheck or you don’t have an emergency fund or you’re not funding a retirement account, you should stop going out to eat, going on vacation and doing all those things,” said Suze.

Bottom line: cut down on the non-essential spending.