Moody’s chief economist predicts US recession amid American pessimism

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00:00Americans are growing more pessimistic about the economy.

00:03A new Wall Street Journal-NORC poll shows nearly 70% say

00:07the American dream either no longer holds true or never did.

00:13It's the bleakest reading in 15 years of polling.

00:16And now, a new warning.

00:18Moody's chief economist Mark Zandi says the U.S. is on the brink of recession.

00:23He tells Newsweek that red indicators are flashing in housing,

00:27employment and consumer prices.

00:28We're not there yet, he says, but a downturn could hit by year's end

00:33if layoffs begin to spike.

00:35Zandi points to President Trump's tariffs and tougher immigration policies

00:39as factors freezing payrolls, with businesses taking a wait-and-see approach.

00:44But he also notes the economy's fundamentals remain strong,

00:49and growth in states like California and New York

00:51could help the country avoid a full-blown recession.

00:55The poll also shows another big gap.

00:57Just 17% of Americans think the U.S. has the world's strongest economy,

01:02while nearly 40% say that other countries are doing better.

01:05A 15-point jump since 2021.

01:08Donald Trump has dismissed the gloom,

01:10calling the U.S. economy the hottest on Earth.

01:13For more unbiased updates, download the Straight Arrow News app or go to san.com.