Moody's Analytics Chief Economist Mark Zandi warned Thursday that the U.S. economy was struggling and said disruptions linked to the US- Israel war on Iran could significantly increase recession risks.
"The economy isn't just soft, it's struggling……….The Iran war needs to end, and the Strait of Hormuz needs to be reopened soon, or recession will become more likely than not," Zandi said in a post on X.
The economy isn't just soft, it's struggling.
That's the clear message in the flood of economic data released today.Ordered from least to most worrisome:First-quarter real GDP was revised down to just 1.6% and this includes the bounce back from the government shutdown at the…— Mark Zandi (@Markzandi) May 28, 2026 Zandi Points To Weaker Growth, Housing And Capital Spending As Warning Signs Supporting Zandi's warning on persistent price pressures, American consumers paid more for goods and services in April than they had in nearly three years.
Inflation rose 3.8% year-over-year—its highest level since 2023 and nearly double the Federal Reserve's 2% target.
