Russian war in Ukraine, red-hot inflation and an increasingly hawkish Federal Reserve.Goldman Sachs, Deutsche Bank and Bank of America are among the firms predicting an economic downturn within the next two years, which could have serious implications for millions of Americans.
Recessions, which simply refers to two consecutive quarters of negative economic growth, are often characterized by high unemployment, low or negative GDP growth, falling income, and slowing retail sales.
They are notoriously difficult to predict. A recent analysis from Wells Fargo suggests that consumers should be on the lookout for a telltale sign in the yield curve.
If the slope between the 10-year Treasury yield and its 1-year counterpart invert, it could be evidence of an impending recession.