Zandi Sees Little Economic Policy Change After Democrats Win Congress

Moody’s Analytics chief economist Mark Zandi expects little change in U.S. economic policy after Democrats won both chambers of Congress, warning that growth remains vulnerable to shocks that could sharply increase recession risk. Zandi said the Iran war, tariffs and trade measures, and immigration restrictions rely on executive action. He expects those policies to persist, weigh on growth and add pressure to inflation and interest rates. Before the election, he was concerned about inflation, a soft labor market and geopolitical risks. He has described growth as fragile in a pre-election assessment . Economic data showed both growth and strain. Gross domestic product grew at a 3.4% annualized rate in the third quarter, and consumer spending increased 3.8%. The consumer price index rose 3.7% year over year in September.

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