With the talk of tariffs, interest rates, and the threat of a possible economic recession, consumers have had their eyes glued to the stock market. The conversation has gotten a bit complicated so in this episode of Democracy & Z, I have Dr. Ben Brennan, Research Associate at the Alpuagh Family Economics Center at the University of Cincinnati to help clear up some of the confusion.
Key words:
- Economic crisis – A severe and sustained downturn in a country’s economy, often characterized by a sharp decline in economic activity, increased unemployment, and decreased trade and investment.
- FED – The Federal Reserve, the U.S. central banking system
- Financial crisis – A financial crisis is a situation where the value of financial assets plummets, often triggering a broader economic downturn.
- Interest rate – The cost of borrowing money, expressed as a percentage of the principal amount, or the return on savings or investments.
- Recession – A recession is a significant and widespread downturn in economic activity (economic crisis) that typically lasts for longer than a few months.
- Stagflation – Stagflation is an economic situation where high inflation occurs simultaneously with stagnant economic growth and high unemployment.
- Stock market – Where investors buy and sell shares of ownership (stocks) in publicly traded companies.
- Tariff – A tariff is a tax imposed by a government on goods and services that are imported from other countries.
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