Economist Jim O'Neill warns the US economy may be too dependent on consumers, like in 2008
The U.S. economy is becoming "riskily dependent" on the "overleveraged consumer," economist Jim O'Neill warned on CNBC on Wednesday, causing him to flash back to the last recession.
However, when compared to household worth, the debt is about half of what it was just before the current expansion began — 14.4% now compared to 27.4% in June 2009., O'Neill said that economic strength depends on consumption, "which is fine unless financial conditions tighten unexpectedly" and indebted consumers "can't keep up the consumption."
Economic weakness has "no chance of improving until Trump gets over his very erratic love affair with trade tariffs, which doesn't look like it's happening anytime soon," the British-born O'Neill added. "Or you guys get over your love affair with Trump."announced plans for 10% tariffs on an additional $300 billion of Chinese imports not already subject to duties.
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