Report: One-Fifth Of The U.S. Economy Is Already In Recession
President Donald Trump continues to insist that the U.S. economy is still booming, despite growing evidence that the country is seeing a slowdown. As it now stands, about one-fifth of the economy is already in recession, as Trump’s trade war continues its assault on American manufacturing and farming, according to a top economist.
The Associated Press reported on Wednesday that job gains for September were modest, with just 135,000 jobs added during the month while some industries, such as coal, actually saw job losses.
Manufacturing added just 2,000 jobs last month, according to the data from payroll processor ADP, which the AP noted is further evidence of the toll Trump’s trade war is taking on the economy.
Job gains continue to be strong enough to keep the unemployment rate low but are significantly weaker than the average monthly hiring of 225,000 last year.
Trump has taxed more than half of imports from China at this point, along with tariffs on steel, aluminum and washing machines, the AP noted. Retaliation from other countries — including China’s decision to stop buying U.S. agricultural products — has harmed the economy further.
Moody’s Analytics chief economist Mark Zandi said approximately one-fifth of the U.S. economy is effectively experiencing recession.
"The trade war is doing real damage to the economy," he said.
Nevertheless, Trump continues to blame the Federal Reserve for the economic slowdown, tweeting on Monday: “They are their own worst enemies, they don’t have a clue. Pathetic!”
Donald J. Trump on Twitter
“As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected. Fed Rate too high. They are their own worst enemies, they don’t have a clue. Pathetic!”