In March and April 2020, American employers slashed a staggering 22 million jobs and the economy plunged into a deep, two-month recession.īut massive government aid - and the Federal Reserve’s decision to slash interest rates and pour money into financial markets - fueled a surprisingly quick recovery. The pandemic brought economic life to a near standstill as companies shut down and consumers stayed home. If Europeans can’t store enough gas for the cold months, rationing may be required by industry.Įconomies have been on a wild ride since COVID-19 hit in early 2020. European countries are bracing for the possibility that Moscow will keep reducing - and perhaps completely cut off - flows of natural gas, used to power factories, generate electricity and keep homes warm in winter. The conflict has made energy supplies scarce and driven prices higher. Russia’s war in Ukraine has darkened the outlook across Europe. In the United Kingdom, the Bank of England on Thursday projected that the world’s fifth-largest economy would slide into recession by the end of the year. Recession is not an American problem alone.

History isn’t entirely reassuring: The unemployment rate was even lower - 3.5% - when an 11-month recession began in December 1969. The resiliency of the current labor market, especially the low jobless rate - is the biggest reason most economists don’t believe a downturn has started yet, though they increasingly fear that one is on the way. And inflation is roaring at a 40-year high. The economic backdrop is troubling: Gross domestic product - the broadest measure of economic output - fell in both the first and second quarters consecutive GDP drops is one definition of a recession. There are, of course, political implications in the numbers being released Friday: Rising prices and the risk of recession are likely to weigh on voters in November’s midterm elections, potentially making it tougher for President Joe Biden’s Democrats to maintain control of Congress. The unemployment rate is expected to remain at 3.6% - just off a 50-year low - for the fifth consecutive month.

Decelerate crossword