‘Don’t panic’: Local experts weigh in on chance of recession | WFRV
GREEN BAY, Wis. (WFRV) – As inflation continues to hit everyone hard, there are rumblings of a potential recession.“That’s when the economy slows, or has negative growth, for essentially two straight quarters,” said David Gerard, Associate Professor of Economics at Lawrence University.While Gerard says it’s not something the U.S. is currently seeing, time will tell.
A major red flag to look out for is high unemployment numbers, just meaning fewer people are working. “Recessions are very hard to predict and then also how long they’re going to be is even harder,” said UWGB Assistant Professor Preston Cherry.
Those prices range from fuel to fun with the family. “It brings people a little alarm and pause. And it brings a bit of uncertainty,” Cherry added.
Experts agree what is happening now will be our reality for at least the next eight months.
“Those higher energy prices, people paying more for gas, at the expense of other things they would have purchased, and as that sort of ripples through the economy you’ll see a slowdown,” said Gerard.
You might be tempted to move some money around in the interim. Cherry just warns to be smart about it.
“Pause on big decisions, maintain what you have going on right now. Adapt. Adapt and make adjustments,” Cherry suggested.
U.S. inflation hit a 40-year high in May 2022. Gas is up $2 from where it was this time in 2021.