A slowdown in GDP, a measure of the economy’s total economic output, would indicate the economy is getting closer to a recession, economists said. The risk of recession—and the job losses that typically come with it—have mounted recently as the Federal Reserve embarked on a campaign to fight inflation by hiking its benchmark interest rate, aiming to slow economic activity and give supply and demand some breathing room to rebalance. The Fed increased its benchmark rate by 0.75 percentage points Wednesday, its biggest hike since 1994. To be sure, the Atlanta Fed tracker is more pessimistic than some other forecasts predicting solid economic growth in the second quarter. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
