Moody’s Economist: US Economy Teetering on Recession Edge After Jobs Collapse
Moody’s Analytics chief economist Mark Zandi warns the US economy is “on the precipice of recession” after last week’s alarming economic data.
July payrolls grew by just 73,000, with massive downward revisions slashing May and June figures to 19,000 and 14,000 respectively.
Consumer spending has stalled, construction and manufacturing are contracting, and core inflation rose to 2.8%. Zandi blames Trump’s tariffs and immigration policies for the downturn, noting that 1.2 million foreign-born workers have left the workforce in six months.
With inflation still above target, the Federal Reserve will struggle to provide relief through rate cuts.
