Jason Katz, UBS Managing Director and Senior Portfolio Manager, discusses whether the Federal Reserve will cut interest rates further at Varney & Co.
The economies of more than 20 states are either in recession or on the verge of sliding into recession, according to an analysis by Moody’s Analytics chief economist Mark Zandi.
Zandi’s analysis found that as of late August, 21 states and the District of Columbia were either in recession or at high risk. Entering a recession. It also found that 13 states were “walking on water” while the economies of 15 other states were expanding.
“State-level data show why the US economy is on the brink of recession,” Zandi wrote in a post on X. “Based on my evaluation of various data, states make up roughly a third GDP of the United States They are either stagnant or at high risk, another third remains flat and the remaining third is growing.
“States experiencing recession are spread across the country, but the broader metropolitan area stands out due to government job cuts,” he added.
US economy saw ‘no fundamental job growth’ last month: Moody’s
Zandi’s analysis found that 21 states plus D.C. were in recession or at risk of entering one. (Michael Nagel/Bloomberg via Getty Images/Getty Images)
Among the states Zandi identifies as experiencing a recession or at high risk of recession, several are notable contributors to the overall U.S. economy in terms of their share of the country’s income. gross domestic product.
Illinois (3.85% of US GDP), Georgia (3.03%), Washington (3.02%), New Jersey (2.93%), Massachusetts (2.73%), and Virginia (2.66%) were the largest state economies listed as being in recession or at high risk of entering one.
Keeping the economies of large states like California and New York out of recession is key to the U.S. economy, said Mark Zandi, chief economist at Moody’s Analytics. (Al Drago/Bloomberg via Getty Images/Getty Images)
Countries identified in Zandi’s analysis as having Economies that “tread water” Includes California (14.5%), New York (7.92%), Ohio (3.14%), and Michigan (2.44%).
States with expanding economies included Texas (9.41%), Florida (5.78%), Pennsylvania (3.54%), and North Carolina (2.86%).
“The southern states are generally stronger, but their growth is slowing,” Zandi noted. “California and New York, which together account for more than a fifth of U.S. GDP, remain resilient, and their stability is critical for the national economy to avoid deflation.”
September jobs report delayed due to government shutdown – what was expected to show?
Federal Reserve Chair Jerome Powell said the central bank is monitoring risks on both sides of its dual mandate, which is to promote price stability and maximize employment. (Kent Nishimura/Getty Images/Getty Images)
Zandi’s analysis has gained attention in recent weeks amid the ongoing government shutdown. It has already delayed the September release Jobs report This is expected to delay the release of the Consumer Price Index (CPI) which was scheduled for next week.
The Bureau of Labor Statistics announced Friday that it is recalling some workers furloughed due to the shutdown to help prepare Inflation in the consumer price index The report, which will instead be released on October 24.
Get FOX Business on the go by clicking here
Inflation remained above Federal Reserve The target is 2% this year and has increased in recent months as the tariffs take effect.
While Fed policymakers cited concerns about inflation, they did so Reducing interest rates last month for the first time in 2025 amid signs of a weak labor market.
https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2025/10/0/0/wall-street-american-flag-002.jpg?ve=1&tl=1
Source link