What You Need to Know About Recessions — Including Whether We’re in One

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US inflation is at a four-decade high, borrowing costs are surging and stocks have taken a beating. With the Federal Reserve embarking on an aggressive campaign to temper demand and tame prices, concerns are growing that its moves will tip the US into recession. In recent weeks, there’s been a plethora of discussion on whether a downturn is inevitable, when it might start and how bad it might be.

1. What is a recession?

It’s often defined as a period when economic output contracts for two straight quarters.