The biggest economic story in 2022 was arguably inflation. As prices ran hotter and hotter, the Federal Reserve adopted a strategy of aggressive rate hikes. As CPI numbers started to cool, it seemed like their approach had worked.
But when you hold CPI data relative to other economic measures, the Fed's purported progress looks shaky. Low-income Americans are missing more and more of their car payments. Mortgage applications are at a 28-year-low. Consumer debt is soaring while emergency savings dwindle. Some believe a full-blown recession is the kind of reset it's going to take to get things back on track.
That's easier to say than it is to stomach. If a recession is unavoidable, though, investors and entrepreneurs alike should be steeling themselves for some financial turbulence in the months ahead. The best way to do that? Double down on learning how to protect your money at work and home.
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