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Trump Recession Odds Have Doubled: Moody's Chief Economist

The article from MSN discusses the increased likelihood of a recession in the U.S. as predicted by Moody's chief economist, Mark Zandi. According to Zandi, the odds of a recession have doubled due to several economic pressures including the Federal Reserve's aggressive interest rate hikes aimed at curbing inflation, which have now reached a 22-year high. These rate hikes are intended to slow down the economy but carry the risk of tipping it into a recession. Additionally, the article mentions the ongoing banking stress, exemplified by the collapse of Silicon Valley Bank, which has led to tighter credit conditions. Zandi also points out that while consumer spending has been resilient, there are signs of it weakening, and the labor market, although still strong, is showing signs of cooling. The combination of these factors has led to a more pessimistic outlook for the economy, with Zandi estimating a 50% chance of a recession within the next year, up from his previous estimate of 25%.

Read the Full Newsweek Article at:
[ https://www.msn.com/en-us/money/markets/trump-recession-odds-have-doubled-moodys-chief-economist/ar-AA1C0DoP ]