system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why are there predictions that there will he a recession next year?
gpt
The US Fed is raising interest rates and unloading their balance sheet. This means there is less money in the country’s money supply. Businesses are forced to borrow at higher rates which means they have to be more conservative about their decisions in opening new plants and hiring new people as it will cost more with higher rates. Less plants being developed and less people being hired causes less spending in the economy which means businesses will make less money. This causes even less hiring, and even worse, potential layoffs. This compression of the economy causes a cyclical loop. Less corporate profits means more layoffs which means less corporate profits. The Fed raising interest rates has scared many people which causes the discussion of a potential recession forecast. 

Keeping interest rates too low and continually expanding the money supply creates inflation which causes an entirely different set of economic problems. So since we are off the gold standard and have a central bank lowering and raising interest rates, expanding and contracting the money supply, it creates a natural boom and bust, expansion and contraction economy.

Other important factors include: 25% tariffs which causes costs to go up which means less corporate profit and a yield curve which is almost negative and is considered to be one of the strongest signals of a recession according to investors. Does this mean we are guaranteed to be in a declining recession? No, not necessarily. But there certainly are a lot of intelligent people who are worried about it for all of these reasons.