Moody's "U.S. economy expected to face difficulties over next 12 months"

A negative outlook was issued for the U.S. economy.

On the 2nd (Korean time), according to The Daily Hodl, Mark Zandi, chief economist at international credit rating agency Moody's, said in an interview, "Over the next year, the U.S. economy will face difficulties due to high inflation and the effects of the Trump administration's immigration policies."

Zandi said, "The Fed is maintaining a wait-and-see stance, but the economic impact of tariffs has not yet fully materialized," and explained, "Rising prices are putting pressure on real incomes and there is a high possibility that consumption will contract."

He added, "A recession may be avoidable, but there will be an uncomfortable period over the next 6-12 months," and pointed out, "For example, immigration policies will reduce the labor force, making shocks to the labor market inevitable."

According to the U.S. Department of Commerce's Bureau of Economic Analysis (BEA), U.S. real gross domestic product (GDP) grew at an annualized rate of 3.3% in the second quarter of this year, rebounding from a -0.5% contraction in the first quarter.