Economists Warn of Danger Ahead for the US Economy in 2024

Economists Warn of Danger Ahead for the US Economy in 2024

Economists Warn , of Danger Ahead for the , US Economy in 2024.

According to Wells Fargo economists, the possibility of a future recession has not been ruled out for the United States economy.

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'Newsweek' reports that the gloomy reminder comes despite better-than-expected growth in 2023 and trends that show consumer spending is still healthy.

Last week, the Commerce Department said the economy had accelerated above forecast to end 2023, with a 3.3% rate.

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In December, according to the Commerce Department, consumer spending shot up, a key sign of a healthy economy.

Despite this, Wells Fargo has pointed to the impact of the Federal Reserve's attempts to fight inflation on certain sectors of the U.S. economy.

Despite this, Wells Fargo has pointed to the impact of the Federal Reserve's attempts to fight inflation on certain sectors of the U.S. economy.

The economists cited dropping manufacturing-sector sentiment in the Mid-Atlantic Region and slowing business activity as major areas of concern.

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The economists cited dropping manufacturing-sector sentiment in the Mid-Atlantic Region and slowing business activity as major areas of concern.

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Monetary policy is still pretty restrictive at this point.

We do think that that will put some sort of headwinds on consumer spending growth, Jay Bryson, Chief economist at Wells Fargo, via 'Newsweek'.

According to Jay Bryson, Wells Fargo's chief economist, the first quarter of 2024 may see continued growth, but the impact of high interest rates is likely to cool the economy later in the year.

According to Jay Bryson, Wells Fargo's chief economist, the first quarter of 2024 may see continued growth, but the impact of high interest rates is likely to cool the economy later in the year.

In the fourth quarter, business fixed investment spending grew but it was at a very, very subdued rate... of somewhere between one or two percent, Jay Bryson, Chief economist at Wells Fargo, via 'Newsweek'.

In general, those things will cause growth to ratchet down a little bit, Jay Bryson, Chief economist at Wells Fargo, via 'Newsweek'