Recession fears dim amid strong job numbers, falling gas prices, passage of Inflation Reduction Act - Ford School economists

August 11, 2022

The flurry of major and surprising economic news in the past week has changed the outlook on inflation and the possibility of recession. 

Ford School professor Betsey Stevenson was one of 126 top economists who wrote a letter to congressional leadership boosting the Inflation Reduction Act, stating, “This historic legislation makes crucial investments in energy, health care, and in shoring up the nation's tax system. These investments will fight inflation and lower costs for American families while setting the stage for strong, stable, and broadly-shared long-term economic growth.” The bill passed the Senate on a 50-50 party-line vote with Vice President Kamala Harris casting the tie-breaker.

The astonishing July jobs report showed an expectation-shattering 528,000 jobs added, which brought employment back to pre-pandemic levels. Among the many analyses, Ford School professor Justin Wolfers said, “It puts to an end any notion that the economy is currently in a recession. It’s unabashedly, directly, in every way you look at it, news suggesting the economy is growing robustly, that people are getting jobs. The labor market not only is healing, but has fully healed.”    


Here is a full list of the articles featuring their analyses: