While two consecutive quarters of negative numbers is the common understanding of a recession, that is not the official definition. He said most investors don’t seem to be expecting a repeat of the early 1980s or another Great Recession like 2008. I don’t think people are deeply concerned about a major recession or massive stagnation,” he said. It’s also worth remembering that if there is a recession, the Fed could quickly reverse course and start cutting rates again to try and restart the economy. But once the economy went into recession in 2001, the Fed slashed rates 11 times that year.

Source: CNN July 26, 2022 17:15 UTC