The Chief Economist at Wells Fargo, Jay Bryson, recently expressed concerns about the possibility of America entering an economic recession. While he is not currently forecasting a recession, Bryson emphasized that the country is teetering on the edge, and any further negative economic data could tip the scales.
In an interview on CNBC’s Squawk Box, Bryson highlighted that the economic growth in 2025 is facing a slowdown due to the impacts of tariffs imposed by the Trump administration. However, he remains optimistic about the outlook for 2026, expecting it to be a better year with some modest stimulus from fiscal policies, monetary easing, and deregulation.
Looking ahead, Bryson predicts that within a year, the Federal Reserve will lower the current interest rate of 425-450 basis points to around 100 basis points in an effort to stimulate the economy. He anticipates that if the unemployment rate starts to rise later this year, potentially due to the effects of tariffs slowing down the economy, the Fed will pivot and begin cutting rates.
Overall, Bryson’s assessment suggests a cautious optimism for the future economic landscape. While challenges remain, such as the looming threat of a recession and the impact of trade policies on growth, there is also a sense of hope for a potential turnaround in 2026.
As the economic landscape continues to evolve, it will be crucial for policymakers and financial institutions to closely monitor key indicators and make informed decisions to navigate through potential challenges and capitalize on opportunities for growth.
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Remember, the future of the economy is dynamic and subject to change, but with careful planning and strategic interventions, there is always potential for resilience and recovery.
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