Moody’s Analyst Warns: US Economy Balancing on Precarious 3-Legged Stool

The US economic framework rests on three shaky pillars—and Moody's says the wobble is getting harder to ignore.

Growth, Inflation, and Employment: The Unstable Trio

Consumer spending can't outrun rate hikes forever. Supply chains remain tangled. Labor markets show cracks even as hiring numbers flash green. It's the kind of economic triple-jump that leaves analysts reaching for antacids.

Debt Ceiling Déjà Vu

Washington's favorite recurring drama—the debt limit showdown—adds another layer of fragility. Political brinksmanship meets fiscal reality, and nobody wins when the music stops.

Market Reactions Tell the Real Story

Bond yields swing like pendulums. Equities price in perfection while credit spreads whisper doubt. It's the classic tale of Wall Street optimism versus Main Street skepticism.

So we keep balancing on this rickety stool—because sitting on the floor isn't an option. At least not until the next Fed meeting.

Risk To the US Economy is Clear, Warns Moody’s Analyst

The risk is clear, he said, and described that if another leg breaks down, the US economy could fall.he said. However, he stressed that Southern states are generally doing well, but their growth is slowing.he said.

In addition, around 1.2 million immigrant labors have left the workforce, which could affect the US economy. They make up to one-fifth of the American workforce, according to Pew Research. Immigrants make up to 45% of the workforce in farming, 30% in construction, and 24% in service industries. The reasons behind the decline are deportation from ICE, while others fear stepping out to work in fear of deportation.