Nancy Lazar, Piper Sandler’s chief global economist, 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. In her view, the current economic situation is “bifurcated” and compared it to previous instances in 1978-1979 and 2008 that ended in recession.
According to Lazar, 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. She emphasized that a recession is necessary to address inflation and prevent continued spending and price increases.
Lazar 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. Her predictions highlight the need for policymakers to take action to prevent an economic downturn and ensure sustainable growth for businesses and consumers alike.