During the summer and early fall, there were multiple warning signs that recession risk for the U.S. economy was rising: the yield curve inverted, manufacturing activity fell and business leaders reported feeling more pessimistic.
But while economic growth is undoubtedly slowing, the risk of outright recession appears to be fading for now. Three consecutive interest rate cuts by the Federal Reserve have buoyed mortgage lending, and consumer sentiment and spending are relatively robust. The yield curve has, for the moment, reverted to the norm. And while monthly job growth has slowed, it is still strong enough to absorb new entrants to the workforce and keep the unemployment rate near historic lows.
Click the audio player above to hear the full story.
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?