Goldman Sachs Analyst Says Consumers Under Severe Pressure as Stagflation Intensifies

Goldman Sachs analyst Scott Feiler warns of a bleak outlook for consumers as stagflation looms, with a bearish stance on consumer cyclicals and defensive stocks. Amidst the administration’s troubled Bidenomics, heavily indebted consumers face mounting pressures as pandemic savings dry up and economic growth falters. “Our desk is getting bearish on consumer and our soft landing basket,” Feiler wrote in a note to clients this week. With ongoing and persistent inflation, experts believe the Biden administration’s focus on external issues only intensifies the struggles of hard-working Americans. Analyst Bonnie Herzog’s team corroborates Feiler’s view, observing that the U.S. consumer is increasingly stretched, grappling with high inflation, rising unemployment, and elevated interest rates that erode spending power and confidence.