There's a 'scary' recession warning hidden in the too-good-to-be-true economic data, Wells Fargo says

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• A closer look at recent economic data reveals a decline in discretionary spending on services, according to a recent note from Wells Fargo, which said the metric historically has fallen during or immediately after recessions. That belies the overall narrative on Wall Street that tariffs have not impacted the economy as much as feared.

Recent economic data have eased fears that President Donald Trump’s tariffs aren’t yet causing a downturn or spike in inflation, but Wells Fargo is more skeptical.