
Masters in Business Moody's Analytics Chief Economist Mark Zandi on the US Economy
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Aug 29, 2025 Mark Zandi, Chief Economist at Moody's Analytics and co-founder of Economy.com, shares insights into the current state of the US economy. He reflects on his career journey, from academia to advising the Obama administration. Zandi dives into fiscal policies of the Biden administration and compares them with those of his predecessors. He discusses the impact of rising homeowners insurance on housing markets and warns of potential recession risks. Additionally, he emphasizes the importance of relationships and real-world economics in navigating today's challenges.
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Economy Teetering Toward Recession
- The U.S. economy is on the precipice of recession, with GDP growth near 1% and consumer spending flat.
- Multiple sectors including manufacturing, construction, and transport already show contraction.
Construction Has Passed Its Peak
- Single-family and multifamily residential construction are falling due to affordability and overbuilding.
- Public infrastructure spending has peaked and is beginning a downward roll.
Labor Force Stagnation Threatens Jobs
- Labor market weakness is emerging with low monthly job gains and a flat or declining labor force.
- If the labor force doesn't grow, generating net job gains becomes very difficult and job losses may appear.







