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Recently, Wall Street economist David Rosenberg issued a major forecast, pointing directly to 2026 as a potential watershed moment for the U.S. economy.
His assessment is quite specific: the labor market is about to turn downward, with unemployment surpassing 5% just the beginning, possibly reaching 6% by the end of the year. This is not a mild adjustment but a comprehensive shift in the labor market. Once employment cannot hold up, the dominoes of an economic recession are essentially set.
More importantly, the Federal Reserve's response. Rosenberg predicts that the Fed will be forced to take aggressive action, potentially cutting interest rates by 125 basis points before the end of 2026, pushing rates down to a low of 2.25%. Imagine this—after fighting to suppress inflation for the past two years and seeing initial results, suddenly having to urgently support the economy again. What does this kind of reversal mean for the market? Everyone should be aware.
How will assets like $BTC, $XRP, and $PEPE react? The market is waiting for two answers: can the unemployment rate really spike to 6%? Will the Fed dare to cut rates significantly? Some see this as excessive panic, while others are already preparing for the worst-case scenario.
What’s your take? Is this just needless worry or a real warning?