"Employment Recession"

Zandi has been sounding the alarm about the economy. Last month, after the shockingly poor July employment report was released, he warned that "the economy is on the brink of recession," pointing to weak consumer spending and contractions in the construction and manufacturing sectors.

After the August employment report was released last Friday, Zandi stated that the U.S. economy is on the brink of recession and may already be in one. He believes the revision of June data is particularly significant, as recessions typically begin with the first month of declining employment. The June data showed a reduction of 13,000 jobs.

Meanwhile, data from the Bureau of Labor Statistics also indicates that long-term unemployment has risen over the past year. Currently, over 6 million people outside the labor force express a desire to find work, compared to about 5.7 million a year ago.

In an interview, Zandi said: "It really feels like an employment recession. Employment is flat or even declining. Output and income are still growing, but the economy is unusually fragile. Nothing else can go wrong, or we could slide into a full-blown recession."

Shortly after Zandi issued his "recession warning," U.S. Treasury Secretary Besant responded by stating that policies have been formulated to create high-quality, well-paying jobs. He also noted that historically, August employment data often undergoes significant revisions and criticized the Federal Reserve for not cutting interest rates earlier.

"President Trump was elected for change, and we will advance economic policies to get the economy back on track. I believe that by the fourth quarter, we will see a significant acceleration in growth," he predicted.