The US dodged a recession in 2023. There's a good chance it does it again in 2024, former top Fed official says.

• The US economy wouldn't quit in 2023.
• It defied calls from plenty of experts who said a recession was bound to strike this year.

The US economy defied calls for a recession in 2023, and it's looking like it'll keep going strong in 2024.

According to the former president of the Dallas Federal Reserve, Robert Kaplan, it's not akin to "believing in Santa Claus" to say the American economy can keep roaring throughout the coming year.

"I think there is a good possibility that we won't have a recession in 2024," Kaplan said in an interview with CNBC on Tuesday. "The big reason why I think the economy is going to surprise with its resiliency, is again, we are running deficits that are in excess of 7% of GDP, spending on the Inflation Reduction Act, the Infrastructure Act."

He added that while some sectors like consumer goods and important world economies like China appear weak, there is strong demand for services and workers as a result of the big spending on projects being embarked on by the US government.

That puts the Federal Reserve in a favorable position to cut interest rates and get the soft landing of the economy that it's looking for, Kaplan added.

The GDP grew by nearly 5% in the third quarter of this year, a stunning pace of growth underpinned by strong consumer spending and a robust job market. Even if spending slows in 2024, experts say that the US economy is on a strong foundation, and that any recession would be relatively mild.

The US central bank signaled a long-awaited pivot towards a more dovish stance at its last policy meeting, with Fed officials indicating they see three rate cuts on the table for 2024.

While some policymakers have since tried to calm market exuberance in the wake of the December meeting, investors are firmly in the grip of their outlook for monetary easing next year.

"[The Fed] has to see more sustained improvement for a number of more months before it acts, but I think that could happen as early as this spring," Kaplan said.