"Recession is not our base case. We continue to expect the economy to slow meaningfully but avoid a 2022 recession," said Katie Nixon, chief investment officer for Northern Trust Wealth Management, in a recent report. But she added that "it is still possible that the technical definition of recession may be met."

Boston Consulting Group's Farag also pointed out that even if the economy has already tipped into recession mode, that doesn't mean a downturn will be as long and painful as some previous recessions. He said most investors don't seem to be expecting a repeat of the early 1980s or another Great Recession like 2008.

"No two recessions are alike. I don't think people are deeply concerned about a major recession or massive stagnation," he said.

*

It's also worth remembering that if there is a recession, the Fed could quickly reverse course and start cutting rates again to try and restart the economy.

That's exactly what the central bank did after a series of rate hikes in 1999 and early 2000, just as the dot-com boom was going bust. But once the economy went into recession in 2001, the Fed slashed rates 11 times that year.

"Recession is not our base case. We continue to expect the economy to slow meaningfully but avoid a 2022 recession," said Katie Nixon, chief investment officer for Northern Trust Wealth Management, in a recent report. But she added that "it is still possible that the technical definition of recession may be met."

Boston Consulting Group's Farag also pointed out that even if the economy has already tipped into recession mode, that doesn't mean a downturn will be as long and painful as some previous recessions. He said most investors don't seem to be expecting a repeat of the early 1980s or another Great Recession like 2008.

"No two recessions are alike. I don't think people are deeply concerned about a major recession or massive stagnation," he said.

*

It's also worth remembering that if there is a recession, the Fed could quickly reverse course and start cutting rates again to try and restart the economy.

That's exactly what the central bank did after a series of rate hikes in 1999 and early 2000, just as the dot-com boom was going bust. But once the economy went into recession in 2001, the Fed slashed rates 11 times that year.