Piper Sandler’s economist Nancy Lazar has predicted a recession in 2024 as the US economy faces a unique situation. She noted that while big companies are benefiting from high interest rates, consumers are struggling with rising debts and inflation eroding wage gains. Lazar emphasized that addressing inflation is necessary to prevent continued spending and price increases.
Lazar described the current economic situation as “bifurcated,” comparing it to previous instances in 1978-1979 and 2008 that ended in recession. She highlighted how large businesses have been thriving due to favorable financial conditions, stock market gains, government support, and high interest rates. However, consumers are struggling with rising debts, inflation eroding wage gains, and higher interest rates.
Despite forecasting a 53% chance of a recession, Lazar expressed concern about persistent inflation and viewed this as a crucial step in addressing the economic challenges currently facing the US. She stressed that a recession is necessary to curb excesses and stabilize the economy.