'America May Slide into Economic Recession' Experts Warns
Economists have cautioned that rising borrowing costs, coupled with persistent inflation, could push the U.S. into a contraction by early 2026.
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Economists have warned that there are strong indicators that the United States of America, under the Trump administration, may slide into a recession.
OPEN TELEVISION NAIJA (OTN) News reports as gathered that the warnings from the economic experts raise questions about the durability of President Donald Trump’s promised “golden age” of economic growth.
Among other things, new labour market data released recently showed job creation slowing to its weakest pace in nearly two years, with hiring freezes spreading across key industries, including manufacturing, retail, and technology. Inflation, though slightly down from last year’s peaks, remains stubbornly high, squeezing household budgets and eroding consumer confidence.
In the financial markets, a trend of volatility has been observed as investors weighed the risks of an economic downturn against the Trump administration’s aggressive economic agenda, including sweeping tariffs on imports and significant tax cuts. Critics argue that these policies, while popular with some parts of the electorate, have added pressure to already strained supply chains and federal finances.
Economists have therefore cautioned that rising borrowing costs, coupled with persistent inflation, could push the U.S. into a contraction by early 2026.
“The warning signs are flashing,” said one senior economist, noting that recent data on unemployment claims and consumer spending paint a worrisome picture.
The prospect of a recession poses a serious political challenge for President Trump, who has repeatedly pledged to deliver unprecedented prosperity during his second term.
Meanwhile, political analysts have submitted that as the 2026 midterm elections come to the horizon, how the administration responds to these mounting economic pressures may shape the political landscape for years to come.
OTN News recalls that there have been as many as 48 recessions in the United States dating back to the Articles of Confederation, and although economists and historians dispute certain 19th-century recessions.
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