Moodie's Chief Economist: The US economy is on the brink of recession.

Moody's Analytics chief economist Mark Zandi warned last week that the US economy is on the edge of a recession after a series of weak economic data releases. The latest indicators show that the economy is stagnating, consumer spending has stalled, and construction and manufacturing are shrinking, with employment expected to weaken. At the same time, high inflation complicates the policy support that the Federal Reserve may implement. The unemployment rate remains low, but mainly because labor force growth has stalled, immigration labor force numbers have decreased, and labor force participation is declining. The current job market is seeing a significant tightening in hiring and a decrease in average work hours, both of which are signals of increasing employment pressures. Zandi attributes a large part of the current economic slowdown to policy choices in Washington, with tariffs eroding business profits and household purchasing power, and reduced immigration restricting the overall growth potential of the economy.