Economist Predicts Recession in 2024 to Tackle Inflation and Re-Stabilize US Economy”.

As the US economy faces a rare and challenging situation, Piper Sandler’s head economist is predicting a recession in 2024. Nancy Lazar, chief global economist at Piper Sandler, described the current economic situation as “bifurcated” and compared it to previous instances in 1978-1979 and 2008 that ended in recession. She highlighted how 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 emphasized 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. In her view, addressing inflation is essential to prevent further economic instability and promote sustainable growth in the long term.