Close Menu
Truth Republican
  • Home
  • News
  • Politics
  • Business
  • Guns & Gear
  • Healthy Tips
  • Prepping & Survival
  • Videos
Facebook X (Twitter) Instagram
Truth Republican
  • Home
  • News
  • Politics
  • Business
  • Guns & Gear
  • Healthy Tips
  • Prepping & Survival
  • Videos
Newsletter
Truth Republican
You are at:Home»Business»Leading economist issues stark recession warning for struggling US economy
Business

Leading economist issues stark recession warning for struggling US economy

Buddy DoyleBy Buddy DoyleAugust 6, 2025No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp
Leading economist issues stark recession warning for struggling US economy
Share
Facebook Twitter LinkedIn Pinterest Email

A leading economist is warning that the U.S. economy is on the brink of recession after incoming economic data last week signaled labor market conditions are softening as inflation is rising, which could complicate the ability of the Federal Reserve to support the economy.

Mark Zandi, chief economist at Moody’s Analytics, on Monday wrote a post on X that the “economy is on the precipice of recession” – citing the weaker-than-expected jobs report released Friday and the inflation data from the previous day that showed consumer prices rose as indicating the economy’s precarious position.

“Consumer spending has flatlined, construction and manufacturing are contracting, and employment is set to fall. And with inflation on the rise, it is tough for the Fed to come to the rescue,” he wrote.

Zandi explained that while the unemployment rate has remained relatively low, that’s because “labor force growth has gone sideways” with the number of foreign-born workers declining along with the labor force participation rate.

MARKETS NOW BETTING FED WILL CUT RATES IN SEPTEMBER AFTER DISAPPOINTING JOBS REPORT

He also said the “economy-wide hiring freeze, particularly for recent graduates, and the decline in hours worked,” is telling about the conditions in the labor market. 

Zandi said the tariffs put in place by the Trump administration are having a greater impact on household budgets and corporate profits, while the immigration crackdown has hampered the labor market.

“It’s no mystery why the economy is struggling; blame increasing U.S. tariffs and highly restrictive immigration policy. The tariffs are cutting increasingly deeply into the profits of American companies and the purchasing power of American households. Fewer immigrant workers means a smaller economy,” Zandi explained.

WHY DOES THE LABOR DEPARTMENT REVISE JOBS REPORTS? HERE ARE 3 REASONS

President Donald Trump

The Commerce Department on Thursday reported the Fed’s favored inflation gauge rose in June, with the headline PCE inflation figure rising from 2.3% to 2.6% on an annual basis. 

That figure is well above the Federal Reserve’s 2% inflation target.

Fed Chair Jerome Powell has previously said that if the central bank is caught in a situation where economic conditions are pushing data further away from fulfilling both of its dual mandate goals of 2% and maximum employment, it would orient its monetary policy to support whichever is further from the Fed’s goal.

Last Friday, the Bureau of Labor Statistics (BLS) reported that the U.S. economy added 73,000 jobs in July – well below the gain of 110,000 jobs that was estimated by economists polled by LSEG. The agency also revised employment in May and June downward by a combined 258,000 jobs.

TRUMP ORDERS TERMINATION OF LABOR STATISTICS OFFICIAL AFTER JOBS REPORT AND DOWNWARD REVISIONS

Those large revisions prompted President Donald Trump to fire the BLS commissioner, and the president claimed without evidence that the agency manipulated jobs data for political purposes ahead of last year’s election.

Zandi defended the fidelity of the economic data in a follow-up post, saying that significant revisions happen regularly when the economy is undergoing a transition or entering a recession.

“Any notion that the economic data misrepresents the reality of how the economy is performing is way off base. The data always suffers big revisions when the economy is at an inflection point, like a recession,” Zandi wrote. “It’s thus not at all surprising that we are seeing big downward revisions to the payroll employment numbers.” 

“Particularly given the DOGE cuts – not because the BLS has had to cut staff, although that can’t help, but because the government often reports payrolls to the BLS late. This didn’t matter much when government employment was stable, but now that government jobs are declining, the cuts are being picked up in the revisions,” he added.

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleCDC issues China travel warning over chikungunya virus outbreak
Next Article Trump Administration Weaponizes FEMA Disaster Aid

Related Articles

Spirit Airlines pilot arrested at airport on child stalking charges

Spirit Airlines pilot arrested at airport on child stalking charges

August 6, 2025
White House says Apple to announce 0B US investment commitment for manufacturing

White House says Apple to announce $100B US investment commitment for manufacturing

August 6, 2025
Chipotle and Sweetgreen bet big on small farmers amid agriculture crisis

Chipotle and Sweetgreen bet big on small farmers amid agriculture crisis

August 6, 2025
Gen Z CEO warns America faces generational workforce crisis as boomers reach retirement

Gen Z CEO warns America faces generational workforce crisis as boomers reach retirement

August 6, 2025
ESPN to acquire NFL Network, other media assets from NFL in exchange for 10% equity stake

ESPN to acquire NFL Network, other media assets from NFL in exchange for 10% equity stake

August 6, 2025
Trump prepares executive order to fine banks for dropping conservative customers over political views

Trump prepares executive order to fine banks for dropping conservative customers over political views

August 6, 2025
Augusta National’s six-figure Masters hospitality packages offer private estates, chefs, tee times, and more

Augusta National’s six-figure Masters hospitality packages offer private estates, chefs, tee times, and more

August 6, 2025
Four killed after medical transport plane crashes in Navajo Nation in Arizona

Four killed after medical transport plane crashes in Navajo Nation in Arizona

August 6, 2025
Social Security to phase out paper checks nationwide as Trump pushes payment overhaul

Social Security to phase out paper checks nationwide as Trump pushes payment overhaul

August 5, 2025
Don't Miss
Mamdani’s past ‘visceral disdain’ for police ‘scares a lot of New Yorkers’ for good reason: NYC crime expert

Mamdani’s past ‘visceral disdain’ for police ‘scares a lot of New Yorkers’ for good reason: NYC crime expert

Trump blasts Schumer, Democrats as ‘country-hating thugs’ amid blockade on Senate nominees

Trump blasts Schumer, Democrats as ‘country-hating thugs’ amid blockade on Senate nominees

Trump Vows To Withdraw The U.S. From The Ukraine Conflict

Trump Vows To Withdraw The U.S. From The Ukraine Conflict

Is Corrosive Ammo Bad (or Actually Okay)?

Is Corrosive Ammo Bad (or Actually Okay)?

Latest News
Vance, Bondi, Patel to huddle at VP residence for Epstein strategy meeting

Vance, Bondi, Patel to huddle at VP residence for Epstein strategy meeting

August 6, 2025
Biden team is ready to drop dirt on Harris if she comes after him, Mark Halperin says

Biden team is ready to drop dirt on Harris if she comes after him, Mark Halperin says

August 6, 2025
White House says Apple to announce 0B US investment commitment for manufacturing

White House says Apple to announce $100B US investment commitment for manufacturing

August 6, 2025
EXCLUSIVE: Trump admin nixes giant wind farm approved ‘last-minute’ by Biden team

EXCLUSIVE: Trump admin nixes giant wind farm approved ‘last-minute’ by Biden team

August 6, 2025
Senate Democrats are feverishly recruiting top candidates to win back majority in 2026 midterms

Senate Democrats are feverishly recruiting top candidates to win back majority in 2026 midterms

August 6, 2025
Copyright © 2025. Truth Republican. All rights reserved.
  • Privacy Policy
  • Terms of use
  • Contact

Type above and press Enter to search. Press Esc to cancel.