Are we slipping toward a recession—yet again? If you’re feeling déjà vu, you’re not alone. Warning signs are flashing across the US economy: July’s jobs report added a scant 73,000 new jobs, with downward revisions of 258,000 for prior months—the worst two-month revision in nearly half a century. Moody’s chief economist Mark Zandi bluntly called the economy “on the precipice of recession,” citing the labor freeze, weak construction, and flat consumer spending. PCE inflation rose to 2.6%, above the Fed’s 2% target, further tying policymakers’ hands.
Compounding the pain: Trump’s tariffs are slicing into corporate profits and household budgets, while immigration crackdowns are constraining labor supply. The phrase of the week: "uncertainty tax"—whether you’re a business owner or a consumer feeling the squeeze, prepare for things to stay bumpy.