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By Kristin Myers, Editor-in-Chief

What's Happening Today

The U.S. economy has been struggling more than we thought. The annual growth rate of real gross domestic product (GDP) in the first quarter of 2022 was revised to a decline of 1.6% from the previously reported decline of 1.5%, according to the Bureau of Economic Analysis.

Real GDP is the total value of goods and services produced in the U.S., adjusting for the impact of inflation and helps indicate the size and growth of the economy. This drop follows an increase in GDP of 6.9% in the fourth quarter of 2021, and means that the economy actually shrank more than expected. The slightly steeper decline comes as the Federal Reserve raises interest rates to combat surging inflation, adding to worries that the U.S. economy could fall into a recession.

If alarm bells are going off in your head, don't panic just yet: It's not 100% certain that the U.S. will indeed go through another recession. And even if it does, when will it happen? How long will it last? Economists and business leaders believe the U.S. economy will likely experience a recession by the end of 2022 or early in 2023.

I know a recession sounds scary, but there are ways to prepare yourself financially in case of an economic downturn. If you haven't already done so, this would be a good time to increase emergency savings and pay off debt. And if you're worried about your job security, you might want to avoid making large purchases.

- Kristin

Editors' Picks

Mortgage Applications Increase, Keep an Eye on GDP (The Balance)

5 U.S. GDP Statistics You Need to Know (The Balance)

Fed's Inflation Fight Made Tougher by State Relief Efforts (Bloomberg)

Why Now Is Good Time To Ask for Raise (The Wall Street Journal)

Who's Right About a Recession—Markets or the Fed? (CNN Business)

US Imports and Exports: Components and Statistics (The Balance)

What Is a Cryptocurrency Savings Account? (The Balance)

Off the Charts

Expectations for the future of business conditions, employment, and family income over the next six months fell in June to their lowest point since 2013, according to the latest index of consumer confidence from The Conference Board.

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Number of the Day

63% - That's how many workers in a survey said they were building a large enough retirement fund, a decline from last year, as people continue to deal with pandemic setbacks to their savings.