Read the assigned Forbes article and summarize in at least 100 words.
According to the Forbes Article there could be a recession coming in late 2023 or 2024. The top priority should be lower inflation rates. The Feds are planning to keep monetary policy tight. The lags times of the recession are also expected to be abnormal. If there is a shorter lag time than 1 year that means the recession will happen sooner. As soon as the Feds announced their tightening policy interest rates rose before they even did anything. Also 54 other countries are keeping policy tight and will have greater and bigger impacts on the world economy. In a recession companies should rethink their hiring plans, stop capital spending and tighten their credit terms.
Reflect on what we learned in the course, find at least one chapter in the textbook where we discuss the related topic, and explain how the chapter(s) is related to the reported event in the article. Do this in at least 100 words.
Chapter 7: Managing through the business cycle you learn how to properly manage your company in both a recession and when times are good. At the end of the article the author Billy Conerly Sr. states what you should do when there is a recession, and what he says directly relates to that chapter. The chapter states how Capital spending should be stopped and monitored closely, gain further financial flexibility, closely watch staffing levels, and lastly to tighten credit terms. Both Conerly and the textbook state that in a downturn you can benefit by picking up cheap production assets, increase market share through flexibility, are hire great employees that have been neglected or laid-off in the recession.