Rebecca Schneid
Various experts, utilizing several key financial indicators, are stating that the odds of a recession in the United States may be getting higher.
According to Bloomberg, U.S. consumer confidence has dropped this month the most since August 2021, with recession fears on the rise. The Atlanta Federal Reserve model has also suggested that economic growth might be negative in Q1 2025.
Yet, there’s some disagreement across the economic spectrum as to whether a recession is being indicated. The New York Federal Reserve recently pointed to healthy economic growth in Q1 of 2025.
With consumers and experts alike concerned about a recession, particularly amid mass changes being made by the Trump Administration—such as proposed reciprocal tariffs and mass layoffs—here's what you need to know.
What is a recession?
A recession can be defined as a “significant decline in economic activity spread across the economy lasting more than a few months, normally visible in production, employment, income, and other indicators,” says Alex Jacquez, chief of policy and advocacy at the economic think tank Groundwork Collective.
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