US Recession Warning Issued by Economist Who Predicted 2008 Financial Crisis
A mismatch between what the U.S. economy has been producing and what it now demands could lead the country into a recession by mid-2025, John P. Hussman, an economist who correctly predicted the 2000 and 2008 stock-market bubbles, has warned.
“Nobody should be surprised if the U.S. economy is in recession by mid-year,” he wrote on X, formerly Twitter, on Tuesday.
Trump’s goal is to reduce the federal workforce and eliminate roles that do not fit his agenda, like those in charge of diversity, equity, and inclusion (DEI) initiatives.
In December, Hussman said that “more evidence” was needed “to expect a recession with confidence.” On Tuesday, he shared an internal memo from the Trump White House budget office saying that federal agencies must temporarily pause all activities related to obligation or disbursement of all federal financial assistance, and other relevant agency activities that may be implicated by the executive orders.
Hussman changed his prediction for a potential recession to mid-2025.