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Economist Warns: Market Growth Masking Economic Weakness Ahead

2/25/2026

27 3 Full Breakdown

Summary

Story summary

Mark Zandi, chief economist at Moody’s Analytics, warns of a market–economy gap.
Markets have performed well despite real GDP growth at 1.4% in late 2025, below the 2.5% potential.
Job growth has stagnated, with unemployment at 4.3%.
Zandi notes that the top 10% of earners drive half of U.S. spending.
He warns a downturn could reduce spending and trigger contraction as valuations are fueled by speculation.

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Story summary

Mark Zandi, chief economist at Moody’s Analytics, warns of a market–economy gap.
Markets have performed well despite real GDP growth at 1.4% in late 2025, below the 2.5% potential.
Job growth has stagnated, with unemployment at 4.3%.
Zandi notes that the top 10% of earners drive half of U.S. spending.
He warns a downturn could reduce spending and trigger contraction as valuations are fueled by speculation.