FRANKFORT, Ky. (LEX 18) — Life is more expensive than usual right now. Inflation is forcing Kentuckians to pay more for food, gas, utilities, clothes, and more.
The Fed is trying to bring down inflation by raising interest rates, but that has caused fears of recession. And the big question is: is a recession coming?
"I think the main takeaway is that there is a lot of uncertainty in terms of how the economy is going to perform as we move throughout the next year," explained Dr. Michael Clark, an economics professor at the University of Kentucky and director of the Center for Business and Economic Research.
Clark explains that different data and different indicators are pointing to different outcomes. While the gross domestic product is suggesting there may be some trouble, employment is still really strong. And employment is a factor that experts strongly consider in this equation.
This makes it difficult for Kentucky to figure out what the future will bring.
"The market isn't acting like it has in the past," said Governor Andy Beshear. "Things that normally go up and down together are moving differently."
If it turns out the country is in a recession, Beshear believes Kentucky will come out on the other side. He points to new jobs and big investments as positive signs of a bright future, but he understands Kentuckians are feeling the burden of inflation right now.
"We've got new jobs coming by the hundreds every month in Kentucky," said Beshear. "We've got the largest investments we've ever seen. But on the other end, we have these inflationary pressures."
"We're going to make it through together," added Beshear. "We're going to have better days ahead."