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Why US is 'not out of the woods yet': Economist

Fears of the global economy dragging down the United States have dissolved somewhat, but risks to stability remain, one economist said Wednesday.

"I think those risks have probably subsided over the past month or two, but I don't think we're out of the woods yet," Michael Feroli, chief U.S. economist at JPMorgan, said on "Power Lunch."

He contended global contagion "has been the biggest risk to the U.S. economy" in recent years. Though it has stabilized, China's economy still causes concern as well as some emerging markets, he said.

Feroli added gross domestic product growth should top the 1.5 percent annual rate seen in the third quarter. A drag on inventory "seems to be abating," he added.

Read MoreUS Q3 gross domestic product up 1.5% vs 1.6% growth expected

He sees the U.S. consumer as the economy's biggest bright spot, pointing to strong October auto sales.