Nancy Lazar, Piper Sandler’s chief global economist, has warned that a recession is necessary to address the current economic challenges facing the US. The economy is “bifurcated,” with big companies benefiting from high rates while consumers are feeling the financial pressure.
Lazar believes there is a 53% chance of a recession and has compared the current situation to previous instances in 1978-1979 and 2008 that ended in recession. She pointed out 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.
To curb excesses and stabilize the economy, Lazar emphasized the need for a recession. She expressed concern about persistent inflation and stressed that it is necessary to address this issue before it leads to further spending and price increases. Despite forecasting a potential recession, Lazar views this as an important step in addressing the economic challenges currently facing the US.
Piper Sandler’s head economist predicts 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. The economist notes a 53% chance of a recession but believes it is necessary to address inflation.
Lazar 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.
On the other hand, 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.
Despite forecasting a potential recession, Lazar views this as an important step in addressing the economic challenges currently facing the US.
In conclusion, Piper Sandler’s head economist has predicted a recession in 2024 as big companies benefit from high rates while consumers struggle financially. The economist believes there is a 53% chance of a recession but stresses its importance in addressing inflationary pressures on consumers.
Nancy Lazar has compared this situation to previous instances that led to recessions in 1978-1979 and 2008. Large businesses have been benefiting from high interest rates while consumers are struggling with debt payments due to rising prices.
The economist believes that if inflation persists without action being taken by policymakers or central banks then it will lead to further spending increases which could lead to even more significant economic issues down
