Interview Only w/ Mark Zandi Boom, Bust, or Meh? What To Expect From Trump’s Economy In 2026

Moody’s Analytics chief economist Mark Zandi joins Chuck Todd to break down what the numbers actually say about the U.S. economy—and why the headline optimism may be masking deeper problems. Zandi explains how upcoming tax refunds and delayed tax cuts will temporarily juice growth, even as that stimulus is entirely deficit-financed. Interest rate cuts are likely coming, but cautiously, and while AI stocks are soaring, the broader market is barely treading water. Beneath the surface, job creation has stalled, manufacturing jobs are shrinking under tariffs, and deportations aren’t translating into more employment for native-born workers as many expected. The conversation widens to a fragile global outlook, with Trump-era protectionism accelerating deglobalization and reshaping trade, housing, and labor markets. Zandi details why college-educated workers are now seeing the sharpest rise in unemployment, how AI skills will define the next generation of jobs, and why renting often makes more sense than buying right now. Looking ahead to 2026, he warns of elevated geopolitical and financial-system risks, an AI-driven stock market that could be vulnerable to a correction, GDP growth likely under 3%, and a job market that may struggle to grow at all. Get your wardrobe sorted and your gift list handled with Quince. Don't wait! Go to https://Quince.com/CHUCK for free shipping on your order and 365-day returns. Now available in Canada, too! Got injured in an accident? You could be one click away from a claim worth millions. Just visit https://www.forthepeople.com/TODDCAST to start your claim now with Morgan & Morgan without leaving your couch. Remember, it's free unless you win! Protect your family with life insurance from Ethos. Get up to $3 million in coverage in as little as 10 minutes at https://ethos.com/chuck. Application times may vary. Rates may vary. Timeline: (Timestamps may vary based on advertisements) 00:00 Mark Zandi joins the Chuck ToddCast 01:15 What do the numbers say about the state of the economy? 02:00 Big Beautiful Bill tax cuts about to start showing up 02:45 Tax refunds will add juice to the economy 03:30 All the “juice” is deficit financed and will only be temporary 04:30 Interest rates cuts likely to be cautious but will continue 05:45 AI stocks on fire, rest of the stocks are just up slightly 07:30 The economy isn’t creating any jobs despite investment 08:15 Job creation flatlined after “Liberation Day” 09:30 Manufacturing has been losing jobs due to tariffs 10:45 Are deportations creating more jobs for native born workers? 11:30 Jobs normally taken by foreign born workers aren’t being filled 12:45 Companies aren’t laying off, they’re just not hiring new employees 14:00 Trade deficit reportedly down, but is that actually a good thing? 14:45 Imports of pharmaceuticals have collapsed due to tariffs 15:30 Tariffs haven’t actually addressed the trade deficit 17:00 Tariff revenue shows the stated tariff rates aren’t holding true 18:15 Will the K-shaped economy continue through 2026? 19:45 Economy is affecting different income groups wildly different 21:00 Partisans believe economy is better depending on who is president 22:15 How do you price in Trump taking Greenland & ending NATO? 23:00 Economies around the world are in a similar, fragile place like the U.S. 24:00 The U.S. is rapidly pulling away from the rest of the world 25:00 Trump’s protectionism has been contagious to other countries 26:15 The world is preparing for a deglobalization 28:15 China hasn’t really taken advantage of U.S. global retreat 29:00 Countries that embrace immigration are the most successful 30:00 No country benefited more from globalization than China 31:45 USMCA has to be renegotiated, will probably remain status quo 34:00 Job market for new college graduates is very tough 34:45 Rise in unemployment is almost exclusively college educated 35:45 Proficiency in AI will be critical in future jobs 36:45 Classical higher education could make a comeback 38:45 Home ownership is unaffordable for many Americans 39:30 It’s better to rent than to buy in this market 40:30 There’s not a lot of buyers for prospective home sellers 41:15 Raising the capital gains exclusion could generate more sellers 43:45 There’s a chance the GOP could lose house majority before November 44:15 What risks that could upend the economy that concern you the most? 45:00 Geopolitical risk is very elevated 45:30 Stock market being buoyed by AI, could be ripe for correction 47:00 If there’s a major problem it will be in the financial system 47:30 If an AI company defaults, it could change the psychology of lenders 49:45 GDP growth will be under 3% in 2026 50:45 Will be tough to imagine positive job growth in 2026See omnystudio.com/listener for privacy information.