Risk of Recession, Continues to Rise, Amid Compounding Factors.<br />On April 28, the United States government <br />released data showing that the economy <br />shrank in the first quarter of 2022.<br />CNN reports that the latest data comes <br />amid an increasing number of frightening <br />headlines warning of an impending recession. .<br />Inflation has reached a 40-year high, <br />impacting people's ability to purchase <br />goods and sustain the economy. .<br />The Federal Reserve's approach <br />to fighting inflation by raising interest <br />rates also increases the risk of a recession.<br />The chairman of the Federal Reserve, <br />Jerome Powell, has argued that policymakers can <br />control inflation without triggering a recession.<br />The chairman of the Federal Reserve, <br />Jerome Powell, has argued that policymakers can <br />control inflation without triggering a recession.<br />CNN reports that the pandemic dramatically impacted supply chains, while Russia's invasion of Ukraine has driven up the cost of energy and food.<br />CNN reports that the pandemic dramatically impacted supply chains, while Russia's invasion of Ukraine has driven up the cost of energy and food.<br />Meanwhile, former Treasury Secretary<br />Larry Summers warned that <br />"stagflation" is also a possibility.<br />According to CNN, stagflation is <br />a combination of rising prices from <br />inflation and a stagnant economy. .<br />The Fed's current policy trajectory <br />is likely to lead to stagflation, with average <br />unemployment and inflation both averaging <br />over 5 percent over the next few years —<br />and ultimately to a major recession, Larry Summers, former Treasury Secretary,<br />via 'The Washington Post'.<br />According to CNN, <br />recessions usually don't last <br />as long as expansions.<br />The Congressional Research Service <br />found that average recessions between<br />WWII and now lasted about 11 months
