Bifurcated Economy: Nancy Lazar’s Prediction of a Possible Recession to Tame Inflation”.

According to Piper Sandler’s head economist, the US economy is currently facing a challenging situation. Large corporations have been able to withstand or even benefit from higher interest rates, while consumers are feeling the financial strain. The economist has predicted a 53% chance of a recession, but has mentioned that a recession may be necessary to bring inflation under control.

Nancy Lazar, Piper Sandler’s chief global economist, recently spoke to Fox Business Network about the unique economic situation the US finds itself in. She referred to the current economic state as a “bifurcated” economy, something that has only occurred twice before and both times ended in a recession. Lazar explained that there are those who are profiting from higher interest rates and those who are suffering, with some able to afford the increased prices and some being financially squeezed.

In recent years, large corporations have seen significant gains from high interest income, favorable financial conditions, stock market rallies, and government assistance. On the other hand, consumers are struggling with mounting debts, high interest rates, and inflation that erodes wage increases. Lazar emphasized the need for higher interest rates to eventually lead to a recession, which would help address issues like excesses and inflation.

Despite the potential for a recession