Over a decade has passed since the last recession, and many experts are now warning that another one could be on the horizon. One of the biggest concerns is inflation, which has been rising steadily over the last year.
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Higher prices affecting customers could lead to a sharp drop in consumer spending, as people will no longer be able to afford to buy non-essential items. This, in turn, could lead to layoffs and a decrease in overall economic activity.
The Federal Reserve has already raised interest rates three times this year in an attempt to head off inflation, but so far these efforts have been unsuccessful. If inflation does reach the point where it starts to hurt the economy, it could trigger a recession that would be difficult to recover from.