Right on cue.
Moody’s Chief Economist Mark Zandi warned the US is economy on the precipice of a recession after last week’s abysmal jobs report released by the now fired BLS Commissioner.
President Trump last Friday fired the Biden-appointed Commissioner of the Bureau of Labor Statistics (BLS) after she ‘faked’ the jobs numbers before the 2024 election to try to boost Kamala Harris’s chances of a victory.
Dr. Erika McEntarfer was promptly fired on Friday after an abysmal July jobs report. The US only added 73,000 jobs in July and the previous months were all revised down.
“Nonfarm payrolls growth totaled 73,000 for July, above the June total of 14,000 but below even the meager Dow Jones estimate for a gain of 100,000,” CNBC reported.
“June and May totals were revised sharply lower, down by a combined 258,000 from previously announced levels,” the outlet reported.
Mark Zandi, an Obama advisor and Clinton donor, warned the US is on the precipice of a recession due to Trump’s tariffs and immigration policies.
“The economy is on the precipice of recession. That’s the clear takeaway from last week’s economic data dump. Consumer spending has flatlined, construction and manufacturing are contracting, and employment is set to fall. And with inflation on the rise, it is tough for the Fed to come to the rescue,” Mark Zandi said.
The economy is on the precipice of recession. That’s the clear takeaway from last week’s economic data dump. Consumer spending has flatlined, construction and manufacturing are contracting, and employment is set to fall. And with inflation on the rise, it is tough for the Fed to…
— Mark Zandi (@Markzandi) August 3, 2025
“Unemployment remains low, but that’s only because labor force growth has gone sideways. The foreign-born workforce is shrinking, and labor force participation is declining. Telling is the economy-wide hiring freeze, particularly for recent graduates, and the decline in hours worked,” Mark Zandi said.
Unemployment remains low, but that’s only because labor force growth has gone sideways. The foreign-born workforce is shrinking, and labor force participation is declining. Telling is the economy-wide hiring freeze, particularly for recent graduates, and the decline in hours…
— Mark Zandi (@Markzandi) August 3, 2025
Mark Zandi took a swipe at President Trump and blamed the ‘cooked’ jobs report on tariffs and fewer immigrant workers.
“It’s no mystery why the economy is struggling; blame increasing U.S. tariffs and highly restrictive immigration policy. The tariffs are cutting increasingly deeply into the profits of American companies and the purchasing power of American households. Fewer immigrant workers means a smaller economy,” he said.
It’s no mystery why the economy is struggling; blame increasing U.S. tariffs and highly restrictive immigration policy. The tariffs are cutting increasingly deeply into the profits of American companies and the purchasing power of American households. Fewer immigrant workers…
— Mark Zandi (@Markzandi) August 3, 2025
Earlier this year Moody’s downgraded the US credit for the first time in over a century.
The US was stripped of its perfect triple-A rating.
Moody’s cited ‘growth in government debt,’ according to CNBC.
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