Hey there! 🖐 Have you heard that the United States might be heading towards a recession? 😱 Don’t worry, we’re here to explain what that means!
Who’s Jerome Powell?
Jerome Powell is the chair of the US Federal Reserve. That’s like the country’s big bank that helps manage the economy and keeps things running smoothly.
What’s Happening?
Recently, Mr. Powell said that the chance of a recession is increasing. A recession is when a country’s economy slows down for a while. This can affect things like jobs, how much people spend, and how businesses grow.
Why is This Happening?
There have been some big changes and uncertainties lately. For example, some trade policies introduced by former President Trump have made things uncertain. When countries change how they trade with each other, it can affect businesses and the economy.
What About Interest Rates?
On Wednesday, the Federal Reserve decided to keep interest rates the same. Interest rates are important because they affect how people and businesses borrow and spend money. If rates are high, borrowing money costs more, and people might spend less.
What Does This Mean for You?
Even though the idea of a recession sounds scary, it’s important to remember that economies go up and down over time. Lots of smart people are working to keep things on track!
So, keep an eye on the news, stay curious, and don’t forget to ask questions if you’re unsure about something. Knowledge is power! 💪
Reference(s):
US Fed chair: The likelihood of a US economic recession is increasing
cgtn.com
