{"id":241527,"date":"2025-09-20T13:29:14","date_gmt":"2025-09-20T13:29:14","guid":{"rendered":"https:\/\/www.europesays.com\/us\/241527\/"},"modified":"2025-09-20T13:29:14","modified_gmt":"2025-09-20T13:29:14","slug":"us-on-the-edge-of-recession-moodys-chief-blames-trumps-tariffs-and-meme-assets-for-slowdown-economy","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/241527\/","title":{"rendered":"US On The Edge of Recession? Moody\u2019s Chief Blames Trump\u2019s Tariffs and Meme Assets For Slowdown | Economy"},"content":{"rendered":"

\"Donald<\/p>\n

US President Donald Trump (File photo)<\/p>\n

Photo : AP<\/p>\n

The US economy may be edging dangerously close to a recession, according to Mark Zandi, chief economist at Moody\u2019s Analytics. Speaking to Business Insider, Zandi pointed to a mix of policy missteps and speculative market behaviour, including the surge of meme assets like Dogecoin (DOGE), as major contributors to the slowdown.<\/p>\n

\u201cThe reason why the economy is on the precipice of recession is policy,\u201d Zandi told Business Insider. \u201cIf we go into recession, just how deep and long the recession will be will be because of policy.\u201d<\/p>\n

Policy Headwinds: Tariffs, Immigration, and Fed Moves<\/p>\n

Zandi highlighted US President Donald Trump\u2019s tariffs, restrictive immigration policies, and recent Federal Reserve decisions as key headwinds creating uncertainty for businesses. He argued that these factors have delayed hiring and investment.<\/p>\n

\u201cI think the slowdown in growth and the acceleration of inflation is due entirely to economic policy,\u201d Zandi said. He also criticised the cuts made to the Department of Government Efficiency, adding that they have contributed to the economic drag.<\/p>\n

Although he does not believe the US is formally in recession yet, Zandi noted that sectors like construction and manufacturing are already showing signs of a slowdown.<\/p>\n

Tariffs Yet to Hit Consumers Fully<\/p>\n

According to Zandi, the worst of the tariff impact on consumers is still ahead. \u201cThey\u2019re slowly but still being passed through, and that\u2019ll become vividly clear in the next few months,\u201d he warned. Rising prices, he added, could strain household budgets and dampen consumer spending.<\/p>\n

Outlook: Job Growth, Rate Cuts, and Investor Risks<\/p>\n

Looking forward, Zandi cautioned that a recession would likely result in a sustained decline in job growth over several months. While potential rate cuts could provide some short-term relief, he doesn\u2019t expect them to prevent a downturn.<\/p>\n

\u201cIt\u2019ll help cushion the weakening of the economy, but it won\u2019t stop it,\u201d he told Business Insider.<\/p>\n

For investors, Zandi offered a stark warning: \u201cIn a recession, no asset class is safe.\u201d He added that rising tariffs could even undermine the safe-haven status of US Treasurys and the dollar, both long considered pillars of global financial stability.<\/p>\n","protected":false},"excerpt":{"rendered":"US President Donald Trump (File photo) Photo : AP The US economy may be edging dangerously close to…\n","protected":false},"author":3,"featured_media":241528,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,4381,17420,16470,128995,69,128993,79,1257,1597,409,81567,55626,128992,128991,4508,2175,36036,113104,67,132,68,12286,128989,128990,128994,112132],"class_list":{"0":"post-241527","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-business-insider","10":"tag-department-of-government-efficiency","11":"tag-doge","12":"tag-dogecoin","13":"tag-donald-trump","14":"tag-donald-trumps","15":"tag-economy","16":"tag-fed","17":"tag-federal-reserve","18":"tag-immigration","19":"tag-mark-zandi","20":"tag-moodys-analytics","21":"tag-moveszandi","22":"tag-policy-headwinds","23":"tag-rate-cuts","24":"tag-tariffs","25":"tag-times-now","26":"tag-trump-tariff","27":"tag-united-states","28":"tag-unitedstates","29":"tag-us","30":"tag-us-economy","31":"tag-us-on-the-edge-of-recession","32":"tag-us-recession","33":"tag-us-treasurys","34":"tag-zandi"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115236868510257037","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/241527","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=241527"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/241527\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/241528"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=241527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=241527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=241527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}