The economic story of the year so far has been inflation. In June the country’s inflation rate hit the highest level in 40 years. Then came news the country’s economy shrank for two straight quarters, stoking concerns of a recession.

At the same time, the country is looking at one of the hottest labor markets in history – which the Biden administration says is proof the economy is not as bad as many Americans think.

So, what does all this mean?

Damian Paletta is the deputy business editor at The Washington Post. He joined Diane to walk through what these economic indicators are telling us, and outline what we can expect in the coming months.