Economy

U.S. consumers to wake up to ‘out of control’ card interest: economist

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Fall in consumer spending major risk to U.S. economy in 2024, economist says

The U.S. economy should be able to avoid a recession next year — but a sharp pullback in consumer spending is among the biggest risks of that occurrence, according to economist Carl Weinberg.

“Consumers are just waking up to the fact that they’re financing their spending by running up their credit cards, and that the interest on those credit cards is over the top, out of control, off the hook right now,” the chief economist of High Frequency Economics told CNBC’s “Squawk Box Europe” on Wednesday.

“That’s going to lead to, I think, a retrenchment in consumer spending, as we get into the new year.”

Weinberg’s base case assumes a slowdown in growth, rather than a recession.

“But the risk is,…



Source cnbc.com

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