Why there are growing fears the U.S. is headed to a recession

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April 13th, 2022

A restaurant displays a "Now Hiring" sign on Aug. 4, 2020, in Arlington, Va. Employers are boosting wages to recruit workers as staffing shortages continue to linger. That's raising the prospect of continued high inflation and aggressive interest rate hikes from the Federal Reserve.

Olivier Douliery / Olivier Douliery

Warning lights are flashing for the U.S. economy.

A growing number of forecasters now believe a recession is on the horizon as the Federal Reserve gears up to raise interest rates sharply to combat the highest inflation in more than 40 years.

It’s an unusual outlook at a time when the economy is strong by many measures. Employers have added nearly 6.5 million jobs in the last 12 months and unemployment has fallen to just 3.6%.

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