U.S. Economic Challenges Predicted for 2026, Analyst Warns

According to ChainCatcher, former Merrill Lynch analyst David Rosenberg has forecasted significant challenges for the U.S. economy in 2026. He anticipates a sharp contraction in the job market, which could weaken the economy and compel the Federal Reserve to implement substantial interest rate cuts. Rosenberg predicts that the U.S. unemployment rate will soon exceed 5% and may approach 6% by the end of the year. He suggests that the collapse of the labor market and the ensuing recession will force the Federal Reserve to reduce interest rates by 125 basis points to 2.25% by the end of 2026, which would involve five cuts of 25 basis points each.