But while the Fed appears more willing to risk a recession, and there is a chance that the U.S. just endured two straight quarters of contracting GDP, there are some signs that major parts of the economy are holding up OK so far.
On Wednesday, the services purchasing managers index from ISM and monthly job openings both saw smaller-than-expected declines. Job openings still outnumber job seekers by roughly two-to-one.
"It's very clear that the economy is slowing here, but that's all part of this process that is going to play out. And as the economy is slowing, you're seeing commodity prices down, and very critically, you're seeing inflation expectations come down," Invesco global market strategist Brian Levitt said on CNBC's "Squawk on the Street."
"The risks to this cycle are still very elevated … but we're starting to see progress that we need to see," he added.
Lower inflation, while parts of the economy manage to grind out growth, could qualify as a mild recession, or maybe even the "soft-ish landing" that Fed Chair Jerome Powell is aiming for.
The June jobs report, due out Friday, will be the next big checkup for the U.S. economy.
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