U.S. Leading Economic Index Signals Potential Recession in 2024

The downturn, expected in the second and third quarters, comes amidst high interest rates set by the Federal Reserve to combat inflation.

The Conference Board's U.S. Leading Economic Index declined by 0.1% in December, signaling a potential recession in 2024.
The downturn is expected to occur in the second and third quarters and recover later in the year.
The Federal Reserve has raised interest rates to a 22-year high of 5.25% to 5.5% to combat inflation.
The Conference Board's Leading Economic Index is based on 10 components, including stock prices, interest rates, unemployment claims, and consumer expectations for business conditions.
The first estimate for fourth-quarter growth is expected to be released on Thursday, showing a potential decline from the third quarter's 4.9% growth.