Moody’s Mark Zandi Warns Wall Street is 'Too Optimistic' About the American Consumer: 'I Am Getting More Nervous...'

Mark Zandi, Chief Economist at Moody's Analytics, expressed concerns about consumer spending forecasts, citing wage stagnation, declining savings, and rising borrowing costs as key issues. He challenged the optimistic view of consumer resilience, stating that macroeconomic data does not support a strong outlook for lower- and middle-income households. Zandi highlighted that after-tax income adjusted for inflation is stagnant and noted the impact of high mortgage rates on consumers' financial flexibility. Meanwhile, the S&P 500 index has increased by 11.84% year-to-date, with mixed performance in ETFs tracking major indices.