The Federal Reserve Building in downtown Washington DC, USA at night. HDR image.
SALT LAKE CITY — Goldman Sachs predicted that there’s a 35 percent chance we’ll have a recession in the next two years.
Deutsche Bank was the first major bank to issue a warning about a possible recession earlier this month.
This came at the same time the Federal Reserve announced several interest rate hikes to address frenzied growth.
Goldman Sachs analysts looked at historical patterns and came to the conclusion that the Fed has “a hard path to a soft landing.”
But you’re not out of options if there is a recession., according to one financial planner.
“We actually have recessions more than we think,” said Shane Stewart, DMBA certified financial planner. “It’s just when they’re pronounced, and long-term recessions is when we sit up and take notice.”
Stewart suggested preparing for any possible downturns in the economy.
“Making yourself employable, making sure you have the skills or the education to be employable,” Stewart said. “And then really not having more debt than you can handle.”
He also encouraged people to set some cash aside now.
He pointed out that we’ve gone through recessions before — like at the start of the pandemic — that were extremely short.