CoinVoice has learned that former Merrill analyst David Rosenberg states that the US economy will face significant difficulties in 2026, with the job market likely to contract sharply, thereby weakening the economy and forcing the Federal Reserve to respond with large rate cuts. The biggest surprise will be that people realize the labor market is not cooling down but shrinking.

David Rosenberg believes the US unemployment rate will soon surpass 5%, and by the end of the year, it is likely to test 6%. The collapse of the labor market and the subsequent recession will force the Federal Reserve to cut interest rates by 125 basis points to 2.25% before the end of 2026, which includes 5 rate cuts of 25 basis points each.