U.S. economy is on the brink of recession, says Moody’s chief economist
Mark Zandi sees trouble ahead for the US economy.
The Moody’s Analytics chief economist recently predicted in a post on X that the US economy is on the brink of recession following some of the latest economic data.
While Zandi later noted that he doesn’t think the US economy is in a recession yet, there are certain industries that have already entered one. Yet, that’s just one of the reasons he thinks that the US economy is headed for harder times.
Zandi spoke with Business Insider about his outlook and how deep he thinks a recession could be. Here’s what he’s seeing ahead.
Zandi reiterated his initial argument to Business Insider, which is that the economy is under pressure from tariffs and restrictive immigration policy.
“I think the slowdown in growth and the acceleration of inflation is due entirely to economic policy,” he said, adding that he believes the Department of Government Efficiency cuts had also contributed to a degree, and described Federal Reserve policy as a headwind.
From Zandi’s point of view, all of these factors have pushed economic uncertainty to extremely high levels, delaying business investment and new hiring. [Continue reading…]