(MENAFN- News Direct) > Tumbling confidence in the economy

Mark Zandi, chief economist at Moody's Analytics, says the warning signs of a recession are mounting. Speaking to Newsweek, Zandi, one of the first economists to forecast the 2008 financial crisis, said that the U.S. economy could be in recession by the end of 2025 [3].

"I don't think the economy is in a recession, at least not at this point," he said, "but it feels like it's on the brink, it's on the precipice of this recession."

He also described job growth in the country as being at a“virtual standstill”.

The stats back up his claim, as the number of people quitting their jobs, a sign of confidence in the job market, are also down year over year. At the Conference Board, expectations of business conditions fell by 1.2 points to 74.8 [2]. This indicator usually signals a recession is on the way when it hits 80. Federal Reserve Chair Jerome Powell cited the risk to the job market as one of the factors pushing the central bank's possible decision to lower interest rates in September [4].

Fortune reports that core inflation rose to 2.8% over the past month, further above the Fed's 2% target, and in June, consumer spending rose less than expected [5].

Marketwatch also reported that Stephanie Guichard, senior economist of global indicators at the Conference Board said,“Consumers' appraisal of current job availability declined for the eighth consecutive month.” [6]

“Meanwhile, pessimism about future job availability inched up, and optimism about future income faded slightly.”

It's worth noting that President Trump has claimed the Fed's jobs data was rigged (there is no evidence of this claim, however), and has fired Lisa Cook, the head of the agency that produces the report. In spite of the President's bullish predictions on the market, the behavior of Americans remains decidedly bearish as tariff costs continue to mount and inflation trends ever upward.

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Tips to guard your wallet against a recession

While these indicators are not cheery, there is some comfort to be gained in knowing how to tighten your belt and ensure your investments are protected. Here are some tips for keeping your money safe if the markets slide:

• Use shared resources: Public transportation, free library services, and even borrowing items from friends instead of buying can help you keep more money in your wallet as prices rise.
• Review your spending: Download an app or review your bank and credit card statements the manual way to get a real picture of how you spend month-to-month. Then look for ways to trim down your fixed expenses and discretionary spending.
• Use the funds you have: If you have extra money in your checking account, funnel it towards your credit card debt or your emergency savings, so that you'll be in a better place financially if the economy takes a turn.
• Think long term with your investments: If you have years before retirement, stay the course on your investments. Remember, a market downturn is a good time to buy stocks on the cheap, and you may watch them rise again in just a few years. A downturn is also a good time to reduce your taxable capital gains. If you're closer to retirement, consider rolling your investments over to a Roth IRA.“Rolling over to a pre-taxed Roth IRA will cost 20% less if your retirement account is down 20%,” says Clark Kendall, CEO of Kendall Capital [7].

Read more: Robert Kiyosaki warns of a 'Greater Depression' coming to the US - with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth' . How to get in now

Article sources

At Moneywise, we consider it our responsibility to produce accurate and trustworthy content people can rely on to inform their financial decisions. We rely on vetted sources such as government data, financial records and expert interviews and highlight credible third-party reporting when appropriate.

We are committed to transparency and accountability, correcting errors openly and adhering to the best practices of the journalism industry. For more details, see our editorial ethics and guidelines .

[1]. The Conference Board .“The Conference Board employment trends indexTM (ETI) declines in July”

[2]. Aljazeera .“US consumer confidence tumbles as labour market slows”

[3]. Newsweek .“Economy 'on the brink' of recession by end of year, Moody's economist warns”

[4]. Reuters .“Powell says Fed may need to cut rates, will proceed carefully”

[5]. Fortune .“Top economist warns the U.S. is 'on the precipice of recession'-and it will be hard for the Fed to come to the rescue”

[6]. Marketwatch .“Americans grow more pessimistic about job market in August”

[7]. CNBC .“6 money moves to make when you're worried about a recession”

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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