"An esteemed American economist isn't feeling good about where things are headed. Joseph Stiglitz, a Nobel laureate and Columbia economist, said he believes the US economy would continue to weaken when speaking to CNBC about his macro outlook on Thursday. That's largely due to a handful of issues he sees hanging over the US, he said, pointing to tariffs, a decline in jobs, and interest rates in particular."
"His downbeat sentiment regardi g the US economy doesn't square with recent growth figures. GDP grew at a robust 4.4% in the third quarter, and is expected to have expanded by 3% year-over-year in the fourth quarter, according to the latest estimates from the Atlanta Fed. But there are a few under-the-surface details that suggest the economy isn't on a good path, Stiglitz suggested."
Economic prospects appear to be weakening due to several structural pressures. Recent headline GDP growth has been robust, but underlying indicators point to deterioration. Tariffs raise consumer prices and have a regressive impact, disproportionately reducing disposable income for lower-income households. Manufacturing job declines weaken labor-market breadth and reduce economic resilience. Uncertainty about interest-rate trajectories adds risk to investment and hiring decisions, amplifying downside risks to growth. Combined, tariff-driven inflation, fewer manufacturing jobs, and rate uncertainty create a fragile outlook for sustained, broad-based expansion.
Read at Business Insider
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