US recession fears hyped, but any slowdown may impact India's economy

The US economy expanded 2.8 per cent in the second quarter and 1.4 per cent in the first quarter of 2024

The jobs data has triggered fears of a recession in the United States but many feel that these apprehensions are exaggerated. Instead, the US economy may slow down or have a shallow recession later in the current year, they believe.

The US Federal Reserve, the central bank, on Monday dispelled the speculation that the economy was in a recessionary freefall. It said rate cuts could be on cards to avoid such a situation.

A recession occurs when there are two straight quarters of decline in gross domestic product (GDP). However, in a broader sense, a recession happens