WSJ's Take On the Week Moody’s Chief Economist on Recession Fears and How Politics Shapes the Economy
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Jun 8, 2025 Mark Zandi, Chief Economist of Moody’s Analytics, shares his insights on the U.S. economy and its resilience amidst rising tariffs and political tensions. He discusses critical economic indicators like employment rates and inflation, emphasizing their impact on consumer sentiment. Zandi delves into the effects of tariffs on trade and job statistics, while exploring the psychological facets of recessions. He also highlights the role of immigration in economic growth and warns of potential stagflation, urging the need for adaptive policies.
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Plan Multiple Economic Scenarios
- Consider multiple economic scenarios amid policy uncertainty.
- Businesses and investors should prepare appropriate responses depending on future developments.
Political Views Skew Economic Sentiment
- Economic sentiment is polarized along political lines, distorting consumer confidence data.
- The Conference Board survey better reflects consumer behavior without political bias.
Recession as Psychological Phenomenon
- Recession occurs when collective confidence collapses, halting spending and investment.
- It’s a psychological feedback loop causing job losses and deeper economic decline.