In a recent government meeting, officials provided an update on the economic forecast, indicating that the outlook remains stable but concerning. The forecast suggests that the economy is neither significantly improving nor deteriorating, with a current assessment indicating a 35% to 40% likelihood of entering a recession, a notable increase from earlier this month when the probability was estimated at 20% to 28%.

The discussion highlighted the impact of recent fluctuations in the stock market and a rise in unemployment figures, which have contributed to this shift in economic sentiment. Despite these challenges, there is cautious optimism regarding a potential \"soft landing\" for the economy, which could lead to gradual growth if conditions stabilize.

Officials noted the importance of sales tax and Real Estate Investment Trust (REIT) revenues returning to pre-pandemic levels, as these are critical for economic recovery. The meeting also addressed the unpredictability of revenue sources, particularly from new tax initiatives linked to the stock market.

Looking ahead, the council plans to convene on Wednesday to discuss upcoming bills and receive a budget process preview from central staff director Ben Noble. This meeting marks the conclusion of the select budget series initiated in April, paving the way for the full budget process, with the budget expected to be transmitted by September 24th.