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What are the benefits and drawbacks of using diffusion indexes?

Economies experience times of growth and times of recession. Learn more about these fluctuations known as business cycles.

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Podcast
April 16, 2025

John O'Trakoun and Adam Scavette discuss their new approach to gauging the health of the economy and the likelihood that a recession is taking place before other indicators would detect it. O'Trakoun is a senior policy economist at the Federal Reserve Bank of Richmond and Scavette is a community development economic advisor at the Federal Reserve Bank of Philadelphia.