Investing IQ - Smart & Simple Investing Tips
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • πŸ“ˆ Investing News
  • πŸ“Š Broker Reviews
    • Charles Schwab Review
    • E*Trade Review
    • Fidelity Investments Review
    • Firstrade Review
    • Interactive Brokers Review
    • J.P. Morgan Self-Directed Review
    • Merrill Edge Review
    • Robinhood Review
    • TastyWorks Review
    • TradeStation Review
    • Vanguard Review
    • Webull Review
    • WellsTrade Review
  • 🏠 Real Estate
  • πŸ”§ Tools
    • πŸ“… Economic Calendar
    • πŸ“• Investment Dictionary
    • πŸ” Search

Investing IQ

Smart & Simple Investing Tips

Home β–Έ πŸ“ˆ Investing News

Growth Recession? Why Fed’s objective is now a ‘Growth Recession’ and not a Soft Landing?

Investing IQ | January 4, 2023

Federal Reserve Chairman Jerome Powell said that the central bank is no longer aiming for a so-called ‘soft landing’ for the economy, where growth slows but doesn’t contract. Now we have a ‘growth recession’: protracted periods of low growth and rising unemployment.

Follow us on YouTube to see more videos like this: » Subscribe Now!

With his speech in Jackson Hole, Mr. Powell said the Fed’s new focus is on sustaining the expansion as long as possible and then dealing with any recession that might arise: “the Fed’s goal is to grind inflation down by slowing growth below its potential.”

The shift in thinking comes as officials grapple with how to extend an economic expansion now in its 11th year—the longest on record—amid muted inflation pressures and renewed concerns about global growth.

What is Growth Recession?

What is Growth Recession? In an article for The Balance, Solomon Fabricant defines a growth recession as “a period when economic output expands but at a rate that is significantly below the long-run average.” He explains that this can be caused by a number of factors, including “an increase in the unemployment rate, a decrease in the labor force participation rate, or a combination of the two.”

Growth Recession is the same as Stagflation?

The answer to this question is no, growth recession and stagflation are not the same. While both refer to periods of economic decline, they have different causes and effects.

Growth recession occurs when an economy contracts for two consecutive quarters. This can be caused by a number of factors, including a decrease in consumer demand or an increase in taxes. The effects of a growth recession include higher unemployment and lower GDP growth.

Stagflation, on the other hand, is a period of high inflation and low economic growth. This is often caused by an increase in costs, such as oil prices. The effects of stagflation include higher prices and lower wages.

What can happen to the economy in this Growth Recession?

A growth recession can have serious consequences for an economy. For example, it can lead to lower wages and higher unemployment. Additionally, it can cause businesses to cut back on investment and production, which can further slow economic growth.

Related Articles

investing-why-how-basics-investor-style Why should you invest? Investing: The Basics.
best-investment-books-text-books-reading Best Investing Books (and Text Books)
investment-portfolio-basics-management Investment Portfolio: 4 Tips to improve Portfolio or Start well from scratch.
Investment Platform Reviews: choosing a stock broker or exchange Choosing a Stock Broker: 4 Critical Things to Consider (Checklist)
how-to-invest-in-real-estate How to Invest in Real Estate: 3 Ways to Get Started.
QT VS WE: Fed Quantitative Tightening vs Easing Quantitative Tightening vs. Quantitative Easing

Primary Sidebar

More articles

Growth Recession? Why Fed’s objective is now a ‘Growth Recession’ and not a Soft Landing?

Real Estate Crowdfunding in Spain. How to invest in properties with low-capital in Europe?

Quantitative Tightening vs. Quantitative Easing

How to Invest in Real Estate: 3 Ways to Get Started.

Navigating the Mutual Funds Minefield: What You Really Should Know

Footer

Investing IQ

Investing News

Economic Calendar

Investment Dictionary

Broker Reviews

Follow Us on Twitter

Contact Us

About Us

Investing News

Janet Yellen, Breaking the Glass Ceiling as Fed Chairman

Growth Recession? Why Fed’s objective is now a ‘Growth Recession’ and not a Soft Landing?

Navigating the Mutual Funds Minefield: What You Really Should Know

Quantitative Tightening vs. Quantitative Easing

Top 50 Tips on How to Invest in the Stock Market

Choosing a Stock Broker: 4 Critical Things to Consider (Checklist)

Why should you invest? Investing: The Basics.

The 7 Mistakes when investing Penny Stocks (Stocks)

Is Stock Market Volatility our New Normal?

Investment Portfolio: 4 Tips to improve Portfolio or Start well from scratch.

Broker Reviews

  • TastyWorks Review 2022
  • WellsTrade Review 2022
  • Webull Review 2022
  • Vanguard Review 2022
See all brokers...

Broker Comparisons

  • Webull vs Robinhood: 2022 Broker Comparison
  • TD Ameritrade vs Robinhood: 2022 Broker Comparison
  • Fidelity vs. Merrill Edge: 2022 Broker Comparison
  • Fidelity vs. Charles Schwab: 2022 Broker Comparison

Copyright © 2023 Β· Smart & Simple Investing Tips. Β· Disclaimer: Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives. Β· Privacy Policy. Β· Terms & Conditions. Β· Cookie Policy.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking β€œAccept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT