U.S. Labor Market Decline and Anticipated Federal Reserve Rate Cuts in 2026
David Rosenberg, a Wall Street veteran and former Merrill Lynch economist, warns of a sharp contraction in the U.S. labor market in 2026. He predicts rising unemployment rates potentially reaching 6%, which will weaken the economy and compel the Federal Reserve to implement significant interest rate cuts. This outlook contrasts with more optimistic views and highlights a looming economic challenge.