The Economy (US)

[Silver]

Economy Is Improving, but Recession Risk, Inflation Still Hover

Nerd Wallet

You can always trust a nerd, right?

The latest bevy of government data shows prices are declining, wage growth has slowed and people aren’t spending like they used to.

By all appearances it seems inflation is, indeed, being tamed. But at this point it’s still uncertain whether the U.S. is in the clear or instead glimpsing a recession on the horizon.

Kathryn Anne Edwards, an economist, independent policy consultant and adjunct at Rand Corp., uses a “bad week” analogy to describe the economic situation.

“In this fight against inflation, we’re in a perpetual state of Wednesdays,” Edwards says. “It’s midweek. We know we’ve had kind of some bad days and we’re on the hunt for any further evidence of how this week is going to go, but it’s not Friday yet. By Friday we’re going to know if it’s been a terrible week or not; by Wednesday it could still go either way.”