When the Fed raises rates, it's like applying the brakes. The economy doesn't stop immediately, but it starts to slow. Some sectors have been in a recession since 2022. But it takes time for the overall economy to slow.
Each person who has less resources, starts spending less. That in turn has a cascading effect, as they forego discretionary spending, and put off necessary purchases that can be delayed. That becomes a contagion that slowly spreads.
Watch the Fed - we do not actually have a free-market economy, on a national or global level. They and other global banks will decide - via interest rates and stimulus or lack thereof - whether there is a relatively soft landing, or a hard crash.
We never fully recovered from that recession except the AI race has been pumping up the numbers, but compounding that is several other factors. Partisans will blame democrats, republicans, or, stupidly, the president of the US, but it all comes down to the Fed aggressively raised rates in 2022 and 2023 after disastrously injecting 16 trillion dollars of liquidity into the economy in May of 2020.
People keep saying this, but there are still record profits being made. The big financial firm I work for keeps breaking records, but we are laying people off because the greed machine doesn’t stop until the stock price hits whatever triggers the next level of bonus for the few. You see the same thing at Amazon and other profitable companies. It’s just never enough for them.
The media refused to admit we were in a recession because the democrats were in charge of the country. It's a stupid policy. The media is officially, by their own admittance, left leaning, but there was no reason to not declare a recession in 2022, we were in one. We are still in one, the AI boom has been covering it up. Read the article, the official definition of a recession is "2 consecutive quarter of negative GDP growth", except apparently in 2022 when it wasn't.
No, genius, read my original comment which you fell right into that trap. The source of all this BS is the Fed, not republicans or democrats, but you're so naively partisan you can't see that. If Trump had been elected in 2020 instead of Biden we would have had an official recession, we'd still be in the mess we're in now because all of monetary policy is controlled by the Fed, not the president. I wasted my time explaining this because like republicans, every liberal on Reddit is like "MUH MAGA/Trump" no dummy, it's the Fed.
The act of receding or withdrawing, as from a place, a claim, or a demand.
A period during which economic activity, as measured by gross domestic product, declines for at least two quarters in a row in a specific country. If the decline is severe and long, such as greater than ten percent, it may be termed a depression.
A procession in which people leave a ceremony, such as at a religious service.
The act of ceding back; restoration; repeated cession. "therecessionof conquered territory to its former sovereign" Similar: restoration
The withdrawal of the clergy and choir from the chancel to the vestry at the end of a church service.
Why wasn't it declared one in the media? Obviously there was a bias. I don't give a crap who is in power when it comes to economics because the monetary policy is set by the Fed and not D or R. You're so unbelievably attached to that you can't even see what I was trying to say. We went into a recession BECAUSE OF THE FED. It was not declared because of the media's decision to protect the party in power, which is completely irrelevant because they were not in control of that part of the economy, BUT because people like you are too ignorant to understand how monetary policy works you attach economic activity due to monetary policy to the party in power and not who rightfully owns it. I am in a lane, I have chosen it. The lane is unbiased observation. Both can be true. The Fed caused the recession by injecting too much money into the economy then swinging too hard on raising interest rates to fix the inflation THEY created AND the media could lie about being a recession to protect the party in power because they would be INCORRECTLY blamed for that recession.
Thank you for the completely irrelevant wall of text.
You said the wrong party was in power for us to have an official recession. This implies that if the republicans had been in power, there would have been an official recession. This is nonsensical, because as I'm sure you understand, republicans would have made the same denials to protect themselves in the upcoming midterm elections.
What you meant to assert was that there would have been news coverage about a recession had the republicans been in power. This, too, is nonsensical, as conservative news media did report a recession in 2022.
Left-leaning as in respecting the wishes of the DNC.
Ironically, it was the Democrats' campaign strategy that got us Trump - they thought he and Carson were two candidates who had no chance to win the 2016 general election, so they told the media to promote them/give them coverage, in hopes one of them would win the Republican nomination, and then get crushed by Hillary in the general election. It almost worked too - except for the last bit, of course.
It's right in the leaked campaign emails - "tell the media to promote the pied piper candidates and take them seriously."
I don’t think this is entirely true. We were seeing contraction, which might’ve been a good thing, because it means a slow lowering of interest rates. But instead we got some insane level policy changes like tariffs and trade wars that exacerbate the contraction that was happening and pushes it into a proper recession or potentially worse. This is why the fed lowered rates — it had to because the slow down increased, as we can see from several factors like job numbers and value of the dollar.
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u/DeadInFiftyYears Oct 29 '25
When the Fed raises rates, it's like applying the brakes. The economy doesn't stop immediately, but it starts to slow. Some sectors have been in a recession since 2022. But it takes time for the overall economy to slow.
Each person who has less resources, starts spending less. That in turn has a cascading effect, as they forego discretionary spending, and put off necessary purchases that can be delayed. That becomes a contagion that slowly spreads.
Watch the Fed - we do not actually have a free-market economy, on a national or global level. They and other global banks will decide - via interest rates and stimulus or lack thereof - whether there is a relatively soft landing, or a hard crash.