Piper Sandler’s head economist, Nancy Lazar, has predicted a recession in 2024 as the US economy faces a rare and challenging situation where big companies are benefiting from high rates while consumers are feeling the financial pressure. Lazar believes that there is a 53% chance of a recession but thinks it is necessary to address inflation.
According to Lazar, the current economic situation is “bifurcated,” meaning that it’s split into two parts with large businesses thriving and consumers struggling. Large businesses have been thriving due to high interest rates, favorable financial conditions, stock market gains, and government support. However, consumers are struggling with rising debts, inflation eroding wage gains, and higher interest rates.
Lazar emphasizes the need for a recession to address inflation and prevent continued spending and price increases. She expressed concern about persistent inflation and stressed that a recession is necessary to curb excesses and stabilize the economy. Despite forecasting a 53% chance of a recession, she views this as a crucial step in addressing the economic challenges currently facing the US.
