3 Things That Might Happen if a Recession Hits

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Will a recession hit in 2023? There's reason to believe things could take a notable turn for the worse next year.

The Federal Reserve is desperate to slow the pace of inflation. To that end, it's been aggressively hiking up interest rates in an effort to encourage consumers to spend less, thereby bridging the gap between supply and demand that's caused inflation levels to soar.

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But if consumer spending declines to a more drastic degree than the Fed is hoping for, it could be enough to fuel a recession. And with that could come these unwanted scenarios.

1. Unemployment could surge

Right now, the U.S. labor market is pretty strong. But if a recession hits, it could be marked with widespread unemployment, putting countless workers in a very unfavorable position.

That's why it's so important to have a solid emergency fund. A robust savings account could be your ticket to getting through a recession and keeping up with your bills in the event of a lost job.