Mark Zandi, Chief Economist at Moody's Analytics, has issued a sharp warning regarding the trajectory of the U.S. economy, declaring that it is currently mired in a “serious affordability crisis.”

Fiscal Policies Are Keeping Inflation Above Fed Targets

In an analysis on X, Zandi attributed stubbornly high consumer prices directly to specific policy choices, stating that higher tariffs and restrictive immigration measures are effectively “juicing” inflation.

According to Zandi, consumer price inflation is currently holding near 3%, well above the Federal Reserve's long-standing 2% target. He argues that this persistence is not an inevitable economic cycle but rather the result of recent interventions.

“It didn't have to be this way,” Zandi wrote, noting that inflation was slowing earlier in the year and was originally on track to return to the Fed’s target.

However, he asserts that a combination of aggressive tariffs, highly restrictive immigration policies, and broader de-globalization trends have “upended that outlook.”

The nation is suffering a ...