Nancy Lazar, the chief global economist at Piper Sandler, has predicted a recession in 2024 as the US economy faces a challenging situation where big companies are benefiting from high rates while consumers are feeling financial pressure. Lazar believes that there is a 53% chance of a recession and emphasizes the need to address inflation.
Lazar described the current economic situation as “bifurcated,” comparing it to previous instances in 1978-1979 and 2008 that ended in recession. Large businesses have been thriving due to high interest rates, favorable financial conditions, stock market gains, and government support. On the other hand, consumers are struggling with rising debts, inflation eroding wage gains, and higher interest rates.
According to Lazar, a recession is necessary to address inflation and prevent continued spending and price increases. She expressed concern about persistent inflation and stressed that it is crucial to curb excesses and stabilize the economy. Despite forecasting a high chance of a recession, Lazar views this as an important step in addressing the economic challenges currently facing the US.