A recession is a very real possibility.
As the Federal Reserve aggressively raises rates to combat persistent inflation, the tough stance could come at a price. Already, falling stock markets have wiped out more than $9 trillion in wealth from U.S. households.
And yet, 31% of Americans said they are not equipped for an economic downturn and are not actively doing anything to better prepare for one, according to a recent Bankrate.com report.
“Recession depression, recession fatigue — whatever you want to call it, the hits to Americans’ financial security keep on coming, first with the devastating coronavirus pandemic, followed by 40-year-high inflation and now the growing risk of another downturn,” said Bankrate.com analyst Sarah Foster.
“Sustaining motivation for two-plus years to prepare for tough economic times can no doubt feel exhausting,” she said.
“People have spent 2½ years managing a global pandemic, uncertain financial futures, political turmoil and growing inflation,” he said. “At some point, people will run out of will to keep making good choices for their futures.”
This article originally appeared here and was republished with permission.