How Does a 'Rolling Recession' Affect Consumers? Economic Experts Explain

The U.S. economy is doing well by most measures. Unemployment is low, wages are rising, and economic growth is strong.

The first half of 2022 started off with negative growth, but a strong labor market and resilient consumers helped turn things around and give hope for the year ahead.

GDP growth in the fourth quarter was stronger than expected, and the Fed is widely expected to announce a more modest rate hike at next week's policy meeting as inflation starts to ease. This is good news for the overall health of the economy.

According to a recent survey, almost half of Americans believe that we are already in a recession. However, career experts say that this is still a good time to get a job. If you are looking for higher pay, your chances may be better now than they have been in the past.

Despite some positive signs in the economy, there are still concerns that a recession could happen. Housing, manufacturing, and corporate profits have all shown signs of slowing down, and there have been a wave of layoffs recently, which has only increased fears.

"There are plenty of economists with strong opinions," said Tomas Philipson, a professor of public policy studies at the University of Chicago and former acting chair of the White House Council of Economic Advisers. "But there's a scarcity of economists with the right opinion."

Sung Won Sohn, professor of finance and economics at Loyola Marymount University and chief economist at SS Economics, has warned that America is already in the midst of a "rolling recession." This means that different parts of the economy are suffering in turn, rather than all at once.

He said that the worst part may be over.

The Fed's actions have had a significant impact on the economy and financial markets. Businesses have reduced inventories and cut jobs in some areas, and consumers have refinanced their homes ahead of rising rates.

Sohn suggested that it may be time to start thinking about an exit strategy.

"Expectations about a recession have been pretty inaccurate," said Yiming Ma, an assistant finance professor at Columbia University Business School. "This cycle has disproven many of our traditional theories," Ma said.

This could be the soft landing that Fed officials have been aiming for, after they aggressively raised interest rates to tame inflation.

Many Americans are struggling to keep up with the rising cost of everyday items, such as eggs. Most have already exhausted their savings and are now relying on credit cards to make ends meet. Despite the country's overall economic standing, many individuals are still struggling to make ends meet.

Several reports show that financial well-being is deteriorating overall. This is a cause for concern for many people, as it can lead to a number of problems down the road.

"There's a lot of uncertainty for consumers right now," Philipson said. He added that the focus should be on sustaining income and avoiding high-interest debt.

He said that you shouldn't plan any major future expenses because no one knows where the economy is going.

The impact of inflation is being felt across the board, but every household will experience a rolling recession to a different degree, depending on their industry, income, savings and job security.

According to Larry Harris, there are a few universal ways to prepare for a career in finance. Harris is the Fred V. Keenan Chair in Finance at the University of Southern California Marshall School of Business and a former chief economist of the Securities and Exchange Commission.