On many measures, the U.S. economy seems to be doing well. Employment is strong, and the stock market is at its highest levels ever.
But Sen. Elizabeth Warren (D-Massachusetts), a presidential candidate in the crowded field of Democratic contenders, sees reasons to worry.
Warren was one of the first economists to warn of an economic downturn before the Great Recession happened last decade, so her worries are nothing to scoff at. The economy we’re seeing right now, she wrote in a recent essay, is doing great for the wealthiest of Americans, but the positives are not reaching the middle- and working-classes.
And as great as the economy is presently, it’s still vulnerable to possible downturns at any moment.
“The country’s economic foundation is fragile,” Warren said, per reporting from USA Today. “A single shock could bring it all down. And the Trump Administration’s reckless behavior is increasing the odds of just such a shock.”
“Warning lights are flashing. Whether it’s this year or next year, the odds of another economic downturn are high — and growing. Congress and regulators should act immediately to tamp down these threats before it’s too late,” she added.
President Donald Trump is not doing enough to ensure a recession doesn’t happen, or to cushion a blow for those with modest-to-poor incomes if one does occur, Warren said.
“With a vulnerable economy, we should be reducing the odds of potential shocks that could push us into a downturn,” Warren said.
There are signs that a recession could be on its way. The U.S. Treasury’s yield curve has been inverted for more than a full quarter, previous reporting from HillReporter.com pointed out, which is a typical indicator that a recession is imminent.
Other’s have warned that Trump’s incessant criticisms of the Federal Reserve’s decisions to raise interest rates could result in problems, too. The constant nagging by the president could result in the Fed to feel pressure to act in a way that the president likes, rather than what’s in the better interests of the country.
“The last time this happened was when Richard Nixon was in office, and what followed was one of the worst economic recessions of the 20th century,” Villanova economics professor Victor Li wrote in a CNBC op-ed last December.
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Chris Walker is a freelance writer based out of Madison, Wisconsin. A millennial with more than a decade of journalism experience, Chris aims to provide readers with the latest and most accurate news of national importance. Chris likes to spend his free time doing activities in his community with his family.