A recession is a significant, broad-based decline in economic activity that lasts more than a few months.
In the US, recessions are officially dated by the National Bureau of Economic Research (NBER), which looks at jobs, income, spending and production. A popular shortcut is two straight quarters of falling GDP, but that is not the official definition.
Why it matters to you
Recessions usually bring layoffs, weaker wage growth and falling stock prices, and the Fed often cuts rates in response.
