In July 2022, the Federal Reserve System estimated there’s a 60% chance that the United States will enter a recession, under a tighter monetary environment, by the end of 2023. Since the U.S. reported two negative quarters of gross domestic product (GDP) in the first two quarters of 2022, technically the country is likely already in a recession.
Recessions can hit retirees and public pension plans hard, so public pension plans reporting large investment losses for 2022 could just be a prelude to rough times for public pension systems. A continued market downturn could potentially add trillions to public retirement systems’
