Inflation hasn't gone away just yet as the Federal Reserve has yet to enact any interest rate cuts in early 2024. As economic growth forecasts showcase an optimistic 2024, has the US actually dodged the possibility of a recession?
Business Insider Senior Personal Finance Reporter and Spokesperson Jennifer Streaks sits down with Yahoo Finance's Brad Smith to discuss saving strategies consumers should take advantage of ahead of potential recession risks.
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Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
BRAD SMITH: Now the Consumer Confidence Index shows that Americans aren't as worried about a recession. Likewise, economists and the Federal Reserve are forecasting continued economic growth in 2024. So is a recession completely off the table? Joining me now here live in Living Color on set, we've got Jennifer Streaks, who is the Business Insider Senior Personal Finance Reporter and Spokesperson. Tell us about the signs of recession could still be on the table. What signs are you tracking here, Jennifer?
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JENNIFER STREAKS: Well, we're looking at high inflation. Inflation is really lingering, and it's proving to be hard to-- to kill. And so I think that consumers are really dealing with high prices at the grocery store, the gas pump, and just in everyday life. These high interest rates, which are trickling down to credit cards, which are trickling into everyday life, is just making it harder for the consumer to spend and to take care of their everyday lives. So I think that there are also to-be-determined factors that haven't been decided yet. We're looking at an election. We still don't know what the economy is going to be doing in six months. It's still too early to tell.
BRAD SMITH: And so with that in mind, I mean, the perceived likelihood of a U.S. recession in over the next 12 months as measured by the Conference Board, they-- they've mentioned that consumers remain concerned with those elevated price levels that you mentioned predominated in right in response but an uptick in concerns about food and gas prices, which you were mentioning as well. So all of these things considered, you know, what is the general expectation as to where consumers can perhaps offset some of those fears of a recession as well?
JENNIFER STREAKS: The first thing you've got to look at is your spending.
BRAD SMITH: Mm.
JENNIFER STREAKS: Discretionary spending, and where you are putting your money. Do you have enough of an emergency fund in place? Are you carrying a high credit card balance from month to month? Are you subjecting yourself to that high interest rate? How is it that you're spending every day? Look at how you're spending your money.