US Recession Looms, But AI Boom Promises Bright Future for Tech Jobs: Moody’s Economist

- Warning of Mark Zendy, chief economist of Moody's

- American consumer spending statistics stable, construction and production figures and reduction in employment, inflation hints of decline in inflation

- Trump's tariff-immigration policies Fatal to America's economy: Mark Zendy

- Zendi claims that the technology sector will survive the current recession due to AI and machine automation

WASHINGTON: Mark Zendy, chief economist at Moody's Analytics, has warned that the American economy is in the throes of a recession. He said that the US economy is close to drowning in the downturn. However, he also relieved tech professionals in the midst of a downturn. He said that the boom in AI will not only sustain the job of tech professionals.

Zendy said in a series of posts shared on social media that the economic statistics released last week indicate that the American economy was slowing down.

He said consumer spending figures are stable, the construction and production sector figures are shrinking, employment has declined. Inflation is rising. Under these circumstances it is also very difficult to help the Fed.

He said there are several factors protecting the technology sector and tech professionals. Tech professionals will also be relieved amid a recession for the uninterrupted demand of AI and demand for automation tools throughout the industry. Other factors include the opportunity to attract companies other than the United States due to the strong investment in cloud infrastructure and cyber security, the elastic approach to global hiring, the huge cost behind digital transformation by the government and the companies. Because of this, the tech sector will be one of the areas that will increase productivity.

Along with that, Zendy warned that restrictive immigration policies could hit the tech sector. He urged policy makers not to impose immigration policy to take global talents in AI, software engineering, and data science. He blamed the tariff and immigration policies for the American economy today. He says that the cause of tariffs has dropped significantly to American companies' profits and the purchase of American customer has decreased. Less immigrant workers mean the economy, Zendy added.