With recent economic indicators like the inverted yield curve and the rising cost of living, many are beginning to think that we may be closer to a recession than we think. While it may be too early to tell definitively, there is plenty of data that suggests that a recession may be on its way.

First, let’s look at the inverted yield curve. An inverted yield curve occurs when the yield on shorter-term bonds is higher than the yield on longer-term bonds. This is seen as a red flag because it suggests that investors are more willing to take on the risk of holding a longer-term bond, which generally indicates that they think economic conditions will worsen in the future. In other words, investors are essentially betting that the economy will take a turn for the worse.

Another indicator of a potential upcoming recession is the rising cost of living. The cost of basic goods and services such as food and housing has been steadily increasing over the past few years, which is putting a strain on households and businesses. This is especially true for lower-income households, who are already struggling to make ends meet.

Finally, there are a number of employment indicators that could signal a recession. For instance, the unemployment rate has been steadily increasing in recent months. This could suggest that employers are beginning to cut back on hiring due to economic uncertainty. Additionally, wage growth has been relatively stagnant, which means that workers are not seeing their wages increase, despite the cost of living going up.

In conclusion, there are a number of data points that suggest that we may be closer to a recession than we think. An inverted yield curve, the rising cost of living, and a number of employment indicators all point to a potential economic downturn. While it may be too early to tell, it’s important to pay attention to these signs and take steps to prepare for the possibility of a recession.