The economy’s warning lights might not yet be flashing red, but they are certainly flashing yellow. The worst job numbers since the Great Recession, the slowest economic growth since COVID, and the worst inflation in 18 months—these are not the signs of a healthy economy.

Economist Heather Long says the U.S. economy is diverging into three tiers of consumer behavior instead of two, amid an ongoing affordability crisis.

The U.S. economy grew 2.2% in 2025, a modest slowdown from 2.4% the previous year. GDP gains were fueled by solid consumer spending and business investment.

The report also underscores an odd aspect of the U.S. economy: It is growing steadily, but without creating many jobs. Growth was a fairly healthy 2.2% in 2025, yet a government report last week showed that employers added less than 200,000 jobs last year — the fewest since COVID struck in 2020.

Veronica Clark, Citi economist, and Bill Eigen, JPMorgan Asset Management CIO of absolute return fixed income, join 'Squawk Box' to discuss the state of the economy, impact of the Iran war on energy prices,

In the most hopeful scenario for the global economy, the latest war in the Middle East ends within a few weeks. The region continues to produce oil and gas. Shipping resumes in th

GDP grew at an annualized rate of 1.4% in the fourth quarter, down from 4.4% in the third quarter. The report was originally scheduled for Jan. 29, but was released at 8:30 a.m. ET Friday because of government shutdown-related delays.

Even a long war would have limited consequences for global GDP. But some emerging economies are vulnerable to persistent high energy prices.

The phenomenon is bipartisan. This week, Trump argued that by many markers — the price of gas, the stock market, the fall in mortgage rates, the extent of job growth — the economy is “roaring.” But polls show that a majority of Americans think that his policies have made life less affordable.

Bank of Japan Governor Kazuo Ueda warned that the Middle East conflict could have a major impact on the nation’s economy, in comments likely to firm up investor expectations that authorities will hold policy steady when they meet later this month.

Nearly half of voters expect the economy to be the most important factor in this November’s midterm congressional elections, with immigration and health care the only other significant issues.