Is U.S. Ready For a 2008-like Recession in 2022?

The media has been pouring out reports of the U.S. economy heading towards another hard-hitting period of recession. The writers have been highlighting the inflation rates, the plummeting of spending power, and of course, the impact of the “Great Resignation” on the economy and the aftermath of such decisions by those in the I.T. sector.

However, now come reports that it may not be very bad after all, and the recession may not impact the Americans in the way it is being reported in media. The U.S. has had some crucial periods of crisis in the form of recession from 1854, during which time it witnessed 32 cycles of expansions and contractions.

In recent history, from 1980 onwards, eight periods of negative economic growth over one fiscal quarter or more and four periods that can be categorized as recessions have been recorded by the National Bureau of Economic Research (NBER).
During the pandemic, NBER declared a two-month COVID-19 recession, but there was a global freeze undergone by almost all countries. Unlike the 2008 recession, experts say the U.S. economy is robust with cash and higher employment figures. It is said unemployment was at a record low of 3.6% in June.

Also, instead of cutting interest rates to add money to the economy in 2022, the Fed has been raising interest rates to curb inflation. To call it a recession, NBER is looking to wait for one or two indicators showing weakness and decline lasting for more than a few months.

Also, if there is a recession, if any, there would be a severe blow to the I.T. sector, which will lead to a cascading effect.