Is a 'Rolling Recession' or 'Richcession' a Potential Savior for the US Economy?

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Written By Jennifer Joslyn

📉 Is a 'Rolling Recession' or 'Richcession' a Potential Savior for the US Economy?

Despite warnings of an impending recession, the U.S. economy is showing signs of acceleration. The government estimated a solid 2.4% annual growth rate in the second quarter, and inflation has reached its lowest level in two years. Some analysts believe the economy may achieve a "soft landing," characterized by slower growth and lower inflation without a full recession. Two trends, a "rolling recession" and a "richcession," are identified as potential factors that might spare the economy from a downturn. In a rolling recession, some sectors contract while others expand, allowing the overall economy to avoid a full-fledged recession. On the other hand, in a richcession, major job losses are concentrated in higher-paying industries, and affluent Americans with financial cushions are less affected. Despite optimism, threats like rising interest rates still loom, and some economists caution that a full-blown recession may still be possible.

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Jennifer Joslyn
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