In this article they take a look at the inevitable recession that the US economy will be enduring in the near future. They speak about how the only way to attempt avoiding the recession will only increase inflation which will just act as a buffer. The article speaks about the arguments for a short or long time lag regarding when this recession will hit. The arguments for a shorter lag time includes the Feds plan to tighten well advance its actual actions. In 2021 they had intention to tighten and interest rates rose immediatly. This would lead us to beleive the recession will come soon. On the other hand there are high bank balances due to the pandemic. Savings across the nation rose due to stimulus and unemployment checks. It will take roughly 16 months for bank balances to return to normal. The article suggests the recession will occur late 2023 or early 2024.
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.
My favorite chapter of the semester is what I will speak about. As the recession nears businesses and business managers need to update their contingency plans and their steps. By reveiwing their contingency plan and having their easy steps, moderate steps, and survival steps on hand they will be prepared for this recession. As the chapter says you must be prepared for these downturns and recessions in order to stay in business. Businesses should look to potentially invest during this time and build their business stronger.