By Anurag Kumar

Copyright timesnownews

The US economy may be edging dangerously close to a recession, according to Mark Zandi, chief economist at Moody’s Analytics. Speaking to Business Insider, Zandi pointed to a mix of policy missteps and speculative market behaviour, including the surge of meme assets like Dogecoin (DOGE), as major contributors to the slowdown. “The reason why the economy is on the precipice of recession is policy,” Zandi told Business Insider. “If we go into recession, just how deep and long the recession will be will be because of policy.” Policy Headwinds: Tariffs, Immigration, and Fed Moves Zandi highlighted US President Donald Trump’s tariffs, restrictive immigration policies, and recent Federal Reserve decisions as key headwinds creating uncertainty for businesses. He argued that these factors have delayed hiring and investment. “I think the slowdown in growth and the acceleration of inflation is due entirely to economic policy,” Zandi said. He also criticised the cuts made to the Department of Government Efficiency, adding that they have contributed to the economic drag. Although he does not believe the US is formally in recession yet, Zandi noted that sectors like construction and manufacturing are already showing signs of a slowdown. Tariffs Yet to Hit Consumers Fully According to Zandi, the worst of the tariff impact on consumers is still ahead. “They’re slowly but still being passed through, and that’ll become vividly clear in the next few months,” he warned. Rising prices, he added, could strain household budgets and dampen consumer spending. Outlook: Job Growth, Rate Cuts, and Investor Risks Looking forward, Zandi cautioned that a recession would likely result in a sustained decline in job growth over several months. While potential rate cuts could provide some short-term relief, he doesn’t expect them to prevent a downturn. “It’ll help cushion the weakening of the economy, but it won’t stop it,” he told Business Insider. For investors, Zandi offered a stark warning: “In a recession, no asset class is safe.” He added that rising tariffs could even undermine the safe-haven status of US Treasurys and the dollar, both long considered pillars of global financial stability.