Moody’s economist Mark Zandi warns: ‘We got a problem’
Economist Mark Zandi warns that the U.S. is approaching a potential fiscal crisis due to a debt-to-GDP ratio exceeding 100% and a $2 trillion annual budget deficit. He suggests that the current political climate makes proactive fiscal reform unlikely without an external economic shock.
Why it matters
Signals growing concern among financial experts regarding the long-term sustainability of U.S. national debt.
Moody’s Analytics chief economist Mark Zandi has issued one of his starkest warnings yet, saying the US may be ‘sleepwalking’ into an economic crises. According a report by Moneywise, speaking on the Sonia and Simon podcast Zandi said, “Never in the 35 years has there ever been a time when all of the measures are screaming, you know, we got a problem”. He also cautioned that the preconditions for a reckoning are falling into place, even if the timing remains uncertain. Zandi pointed to America’s debt-to-GDP ratio crossing 100% in April, a level not seen since the aftermath of World War II. He highlighted the government’s $2 trillion annual budget deficit, which becomes harder to manage as interest rates rise.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in