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

Photo of a businessman clinging to the edge of a cliff (Credit: Getty Images)

• Indicators from the past week paint an overall picture of an economy on the edge of a downturn, according to Moody’s Analytics chief economist Mark Zandi. Not only is the labor market weakening, but consumer spending is flat while construction and manufacturing are shrinking, he warned, adding that the Federal Reserve will have a hard time reviving growth with inflation still above its target.

The shocking jobs report on Friday wasn’t the only red flag. Indicators from the past week paint an overall picture of an economy that’s headed for a downturn, according to Moody’s Analytics chief economist Mark Zandi.