Benzinga·2025-10-10 11:20Economic Overview - The U.S. economy grew by 3.8% last quarter, but approximately half of U.S. states are experiencing economic contraction [1] - Chief Economist Mark Zandi reported that 22 states are contracting, 16 are growing, and 13 are stable [2] Low-Income Households - Lower-income households are facing financial strain, with many feeling their job security is tenuous [3] - Consumer confidence among those earning between $25,000 and $35,000 has declined, with nearly 20% finding jobs hard to secure [3] - Wage growth for lower-income workers is lagging, contributing to struggles with debts and limited savings [4] Inflation and Economic Policy - Fed Vice Chair Michael Barr indicated that inflation may persist through 2027, suggesting prolonged restrictive rates [5] - Economic contraction is expected in the District of Columbia due to federal layoffs and funding cuts, impacting nearby states [6] Regional Economic Challenges - The Midwest is facing economic challenges due to tariffs and stricter immigration policies, affecting manufacturing and agriculture [7] - Georgia is experiencing a slowdown linked to its manufacturing base and agricultural exposure [7] - JPMorgan Chase CEO Jamie Dimon has warned of a potential recession in 2026, citing persistent inflation concerns [7]