Moody's Chief Economist Warns of US Recession Risk Amid Consumer Strain

Moody's chief economist Mark Zandi has issued a recession warning for the United States despite the economy currently growing at around 2% annually. Growth is being driven largely by business investment and AI advancements, masking underlying vulnerabilities in household finances. Falling real disposable income and historically low savings rates signal that many consumers are under significant financial pressure. The top 20% of earners are disproportionately driving consumption, leaving the broader economy exposed to potential downturns. This widening inequality means that technological progress alone may not be enough to shield the US from a recession.