US recession risk stays high despite Democrats' Congress takeover
Economists warn the US economy remains fragile despite Democrats winning the Senate and House, with tariff, spending and AI-dependent growth risks unchanged.
Democrats swept midterm elections but control of Congress won't shift economic policy much. President Trump still controls executive orders on tariffs, trade and immigration.
Trump shows no sign of changing course. Chief economist Mark Zandi warns the economy sits in a very fragile place.
Growth depends heavily on artificial intelligence investment, with risks decidedly to the downside. Wages are not keeping up with inflation, now at 3.7 per cent.
The national debt stands at 40.5 trillion with annual interest payments exceeding 1 trillion.
- 3.7 percent
- Current inflation rate
- 40.5 trillion
- National debt
- Exceeding 1 trillion
- Annual interest payments
Why it mattersA US recession would ripple through global markets and hit Australian investors, super funds and exporters. Economic fragility increases that risk.
AustraliaNo direct immediate change, but persistent US recession risk means Australian superannuation returns could weaken and global market volatility may increase.
