A mild recession is in the cards later this year.
Federal Reserve economists point to last month’s banking crisis as the catalyst.
But should you be worried here in Southwest Florida?
No matter where you swipe, everything is a little bit more expensive.
But over the last couple of years, the Federal Reserve has raised interest rates to bring those high prices down.
“We are committed to restoring price stability and all of the evidence says that the public has confidence that we will do so, that we will bring inflation down to two percent over time,” said Jerome Powell, Federal Reserve chairman.
But just as prices started heading the other direction, Silicon Valley Bank and Signature Bank collapsed.
And while experts say you shouldn’t worry about your own bank accounts, their concerns lie with how your bank will loan money.
“If banks pull back on their lending and borrowing is lessened and individuals and businesses have less money to spend in the economy, we could see a slowdown that would lead to a recession,” said CBS News business analyst Jill Schlesinger.
Now, the fed believes this could send the country into a mild recession later this year, bringing higher unemployment.
FGCU professor of real estate Shelton Weeks said mild wouldn’t be too bad.
“When they say it’s mild hopefully it’ll be something that we’re in for a quarter or two and then recovery starts shortly after that. And I think that’s fairly realistic given how strong economic activity is and how tight the labor market has been,” Weeks said.
And Southwest Floridians shouldn’t be too worried.
“First thing I would say is don’t panic,” Weeks said. “Because we continue to be on the winning side of the migratory patterns of the United States. We still have folks moving here and that’s causing our economy in the state of Florida to continue to expand.”
But don’t throw caution or your money to the wind either.
If you’re still worried, you can take some steps to help survive a recession.
Nerdwallet recommends going over a spending plan, cut back on as much as you can and throw any extra money in a high yield savings account.
And of course, try to pay down any high interest debt like credit cards.