Moody’s Chief Economist Warns U.S. is ’On the Edge of Recession’

Moody's chief economist Mark Zandi has issued a stark warning: the U.S. economy is teetering on the brink of recession. States accounting for nearly a third of GDP are already in or NEAR recession territory. "State-level data makes it clear why the U.S. economy is on the edge of recession," Zandi stated in an X post. His analysis divides the economy into three segments—one-third in crisis, one-third stagnant, and one-third still growing.

The labor market shows alarming cracks. August's meager 22,000 job additions fell far below expectations, while June's figures were revised to a 13,000 job loss—breaking a 53-month growth streak. "It's not a full-blown recession, as GDP, incomes, and profits are still slowly growing," Zandi conceded. "But for how much longer, if the economy continues losing jobs?"