Rosenberg warns of a 'very significant' recession in 2027

Economist David Rosenberg said the US could tip into a serious contraction in 2027 as fiscal and AI-related stimulus dries up. He warned a sharp stock-market drop could be enough to trigger the downturn and called the risk a "very significant recession in 2027." After Americans receive their tax refunds this year, Rosenberg said the economy could have a "lifeline" of two to three months.

He pointed to two main supports that look set to weaken. One is the large fiscal boost from President Trump's One Big Beautiful Bill, which extended the 2017 tax cuts and added other policies intended to stimulate growth. Rosenberg suggested that stimulus could be in jeopardy after the midterm elections this November if Democrats take control of Congress and lawmakers end up in gridlock, leaving the fiscal support a "no-show" in 2027.

The other is AI-related capital spending.

United States

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