What Happens When The Interest Rate Tsunami Hits Consumers?

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The forces bearing down on the US economy are so varied and mostly uncontrollable that it seems impossible for consumer-facing businesses to accurately forecast demand, let alone plan for it. Wall Street has already cast its vote — there’s a recession coming (or maybe already here). 

Since the fourth quarter of 2021, investors have been punishing the S&P 500 index, driving it down by nearly 25% of its peak value. That roughly translates into a loss of equity, and a plunge in investment accounts, of $10 trillion. 

If the money merchants are right, the question becomes whether a chart of the expected recession will be shaped like a soup bowl — a wide shallow sag, not so bad — or will it look more like a sinkhole?  

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Forbes.com  Consumer Data  consumer spending

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