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Monday, April 6, 2026

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3 hours ago
Media
War

Trump Vows to Find ‘Sick’ Media Leaker Who Put Mission to Rescue Downed Pilot ‘At Great Risk.’

PULSE POINTS

❓WHAT HAPPENED: President Donald J. Trump on Monday vowed that his administration would identify the “leaker” who revealed that the U.S. military was unable to immediately rescue the second U.S. airman shot down over Iran last week.

👤WHO WAS INVOLVED: President Trump, the U.S. military, the corporate media, and a suspected leaker.

📍WHEN & WHERE: The comments were made during a White House press conference on Monday, April 6, 2026.

💬KEY QUOTE: “We have to find that leaker because that is a sick person; probably didn’t realize the extent of how bad it was… They put this mission at great risk.” — President Trump

🎯IMPACT: While the F-15E’s pilot was swiftly rescued in a daring daytime extraction, the downed jet’s Weapons Systems Officer (WSO) could not be located and rescued immediately.

IN FULL

President Donald J. Trump on Monday vowed that his administration would identify the “leaker” who revealed that the U.S. military was unable to immediately rescue the second pilot shot down over Iran last week. “We’re looking very hard to find that leaker,” the President said during a White House briefing discussing the successful rescue operation to extract the two U.S. airmen who were forced to eject from their F-15E deep inside Iran.

“They basically said that we have one and there’s somebody missing. Well, Iran didn’t know there was somebody missing until this leaker gave the information,” Trump revealed, adding, “We think we’ll be able to find it out, because we’re going to go to the media company that released it, and we’re going to say, ‘national security, give it up or go to jail.’”

Last Friday, it was revealed that a F-15E fighter jet was shot down over Iran, with both the pilot and the Weapons Systems Officer (WSO) ejecting from the aircraft deep inside Iranian territory. Following the downing of the jet, the Iranian regime announced a large bounty for the capture of the two U.S. airmen and dispatched a contingent of its military forces to locate them. While the F-15E’s pilot was swiftly rescued in a daring daytime extraction, the downed jet’s WSO—as revealed in a media leak—could not be located and rescued immediately.

After an extensive search, the second U.S. airman was located early Sunday morning and successfully extracted through an operation led by Navy SEAL Team 6 commandos and hundreds of special operations troops and other military personnel. The mission faced a significant challenge when two MC-130 aircraft suffered mechanical failures, risking the commandos being stranded. Commanders made the high-risk decision to send additional aircraft into Iran to extract the team in waves.

“We have to find that leaker because that is a sick person; probably didn’t realize the extent of how bad it was… They put this mission at great risk,” Trump reiterated.

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14 minutes ago
Crime
Immigration

Soros-Backed DA Claims Deporting Violent Illegals is ‘Perversion of Justice.’

PULSE POINTS

❓WHAT HAPPENED: George Soros-backed Fairfax County Commonwealth’s Attorney Steve Descano is facing renewed criticism for stating that deporting criminal illegal immigrants is a “perversion of justice” in a now-deleted section of his campaign website.

👤WHO WAS INVOLVED: Steve Descano, accused murderer Abdul Jalloh, victim Stephanie Minter, and George Soros.

📍WHEN & WHERE: The now-deleted campaign webpage resurfaced in early April 2026.

💬KEY QUOTE: “If two people commit the same crime, but only one’s punishment includes deportation, that’s a perversion of justice and not a reflection of the values of Fairfax County.” – Steve Descano.

🎯IMPACT: Descano’s policies are under scrutiny following the murder of Stephanie Minter by a repeatedly released illegal immigrant.

IN FULL

Steve Descano, the George Soros-backed Fairfax County Commonwealth’s Attorney, is facing renewed public scrutiny after it was revealed over Easter weekend that a now-deleted section of his campaign website called the deportation of criminal illegal immigrants a “perversion of justice.” The district attorney for Fairfax County, Virginia, has been the focus of repeated criticism from voters and the Trump administration for dropping charges against illegal immigrants, including Abdul Jalloh—an illegal immigrant from Sierra Leone with over 30 prior arrests—who allegedly stabbed 41-year-old Stephanie Minter to death at a bus stop in late February.

In a now-deleted Community page on Descano’s campaign website, the far-left prosecutor pledges he “will make charging and plea decisions that limit or avoid immigration consequences.” Descano, whose campaigns have reportedly received over $700,000 from organizations backed by George Soros, further states, “If two people commit the same crime, but only one’s punishment includes deportation, that’s a perversion of justice and not a reflection of the values of Fairfax County.”

Next week, Descano and Fairfax County Sheriff Stacey Ann Kincaid are due to appear before the House Judiciary Committee’s Immigration Integrity, Security, and Enforcement Subcommittee to testify on Fairfax County’s sanctuary policies amid several recent violent crimes perpetrated by illegal immigrants. In December last year, Descano’s office dropped charges of malicious wounding and brandishing a firearm against Marvin Morales-Ortez, an illegal immigrant from El Salvador, and subsequently released him from county custody. A day later, Morales-Ortez was arrested again, this time in connection with a fatal stabbing.

The National Pulse previously reported that Descano and Fairfax County officials have faced backlash for the repeated release of Abdul Jalloh, despite his violent criminal history. On February 23, Jalloh allegedly murdered Stephanie Minter at a bus stop in Fairfax County’s Hybla Valley neighborhood. Local police had repeatedly warned prosecutors in Descano’s office that the illegal posed a dangerous threat to the broader community.

Image by World Economic Forum/swiss-image.ch/Photo by Sebastian Derungs.

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54 minutes ago
News

Chinese Researcher Falls to Death at U.S. University After Alleged ‘Hostile Questioning’ by Feds.

PULSE POINTS

❓WHAT HAPPENED: A Chinese semiconductor researcher at the University of Michigan, Danhao Wang, died after falling from the university’s George G. Brown Building, with his death being investigated as a “possible act of self-harm.” He has previously been subject to what the Chinese government described as “hostile questioning” by U.S. authorities.

👤WHO WAS INVOLVED: Danhao Wang, a postdoctoral researcher in the College of Engineering, U.S. law enforcement, and the Chinese Ministry of Foreign Affairs.

📍WHEN & WHERE: March 20, 2026, at the University of Michigan’s George G. Brown Building in Ann Arbor.

💬KEY QUOTE: “China solemnly calls on the U.S. to carry out a full investigation, give the family of the victim and the Chinese side a responsible explanation, stop any discriminatory law enforcement targeting Chinese students and scholars in the U.S., and stop imposing wrongful convictions.” — Consulate General of China in Chicago

🎯IMPACT: China has routinely used students and researchers at American academic institutions to conduct technological espionage and intellectual property theft.

IN FULL

Danhao Wang, a postdoctoral researcher at the University of Michigan‘s College of Engineering, died on March 20, 2026, falling from the university’s George G. Brown Building, after what Chinese officials allege was “hostile questioning” by U.S. law enforcement. Police are investigating the case as a “possible act of self-harm.” Wang’s research at the university focused on materials related to semiconductor production.

The Chinese Ministry of Foreign Affairs has suggested that Wang’s death may be tied to “being subjected to hostile questioning by U.S. law enforcement.” A statement from the ministry called for a “full investigation” and criticized what it described as “unwarranted U.S. interrogation and harassment targeting Chinese researchers and students.”

Notably, the incident occurred shortly after University of Michigan interim President Domenico Grasso testified before a House Committee about concerns regarding Chinese espionage on American campuses. Grasso emphasized the importance of foreign students while also highlighting the university’s decision to end a relationship with a Chinese institution deemed a potential security risk.

“The incident occurred at a U.S. university within our consular jurisdiction, and we are deeply saddened by the heartbreaking death,” the Consulate General of China in Chicago wrote in a statement posted to X (formerly Twitter), adding, “China solemnly calls on the U.S. to carry out a full investigation, give the family of the victim and the Chinese side a responsible explanation, stop any discriminatory law enforcement targeting Chinese students and scholars in the U.S., and stop imposing wrongful convictions.”

China has routinely used students and researchers at American academic institutions to conduct technological espionage and intellectual property theft. In May of last year, the Trump administration began a process of revoking student visas previously granted to Chinese nationals, especially those with Chinese Communist Party (CCP) ties.

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1 hour ago
Media

CBS Replaces Colbert With ‘Woke’ Comedian Who Sued McDonald’s for ‘Racism.’

PULSE POINTS

❓WHAT HAPPENED: CBS has announced a new late-night schedule, replacing The Late Show with Stephen Colbert with the roundtable-style comedy talk show Comics Unleashed with Byron Allen at 11:35 PM.

👤WHO WAS INVOLVED: CBS executives, Byron Allen, and comedians featured on Comics Unleashed.

📍WHEN & WHERE: The change will take effect on May 22, 2026, with the show airing on CBS-owned stations nationwide.

💬KEY QUOTE: “The world can never have enough laughter,” said Byron Allen.

🎯IMPACT: Allen—a television producer and founder of the Allen Media Group, turned comedian—sued the McDonald’s fast food chain for $10 billion in 2021, alleging the company engaged in discrimination against black-owned media companies when making decisions regarding its advertising budget.

IN FULL

CBS announced on Monday that it will replace The Late Show with Stephen Colbert‘s time slot in its late-night programming with the roundtable-style comedy talk show Comics Unleashed with Byron Allen. The change will take effect on May 22, 2026, the day after Colbert‘s final episode.

Comics Unleashed, a roundtable comedy talk show hosted by media mogul-turned-comedian Byron Allen, has been airing in the 12:35 AM slot. It will now feature two back-to-back half-hour episodes nightly. The show has been in first-run syndication since 2006 and airs on CBS-owned stations in 14 markets.

By turning to Allen, the founder of the Allen Media Group, to fill the Colbert time slot, CBS appears to be doubling down on ‘woke’ late-night comedy programming. In 2021, Allen sued the fast-food chain McDonald’s for $10 billion, alleging that the company discriminated against black-owned media companies in allocating its advertising budget. The lawsuit was settled out of court in 2025.

Additionally, Allen sued Comcast and Charter Communications, accusing the two cable providers of racism for excluding his television properties from their cable bundles. The case was settled out of court in 2020, after the U.S. Supreme Court intervened and ruled that Allen must demonstrate that race was the sole deciding factor in the cable providers’ decision not to carry his channels.

In July last year, CBS announced the cancellation of The Late Show with Stephen Colbert, amid parent company Paramount’s proposed merger with Skydance Media. Previously, Colbert had ridiculed Paramount for its $16 million settlement with President Donald J. Trump, who had sued CBS for doctoring a 60 Minutes interview with Kamala Harris during the 2024 presidential race.

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2 hours ago
Politics

Mamdani Unveils Far-Left ‘Racial Equity’ Plan for NYC.

PULSE POINTS

❓WHAT HAPPENED: Mayor Zohran Mamdani’s (D) administration released New York City’s first-ever racial equity plan, outlining goals to combat alleged racial disparities.

👤WHO WAS INVOLVED: Mayor Zohran Mamdani, the Commission on Racial Equity, and former Mayor Eric Adams.

📍WHEN & WHERE: Released on Monday, April 6, 2026, in New York City, with public commentary open for 30 days.

💬KEY QUOTE: “While today’s True Cost of Living measure confirms that the affordability crisis touches every corner of our city, we know that these effects are not applied evenly. So often it is black and brown New Yorkers who are hit the hardest.” — Zohran Mamdani

🎯IMPACT: The new racial equity policies are already drawing scrutiny, especially from the federal government, as the Trump administration continues to roll back discriminatory diversity, equity, and inclusion (DEI) programs around the country.

IN FULL

New York City’s socialist mayor, Zohran Mamdani (D), unveiled his administration’s radical racial equity plan, directing city agencies to address and combat alleged racial disparities through initiatives such as improving pay “equity” in city roles, anti-racism training for staff, and enhancing data collection across demographics.

“While today’s True Cost of Living measure confirms that the affordability crisis touches every corner of our city, we know that these effects are not applied evenly. So often it is black and brown New Yorkers who are hit the hardest,” The Ugandan immigrant mayor said during a press conference on Monday. He continued, “This preliminary racial equity plan is the first step in developing a whole-of-government approach to tackling that reality. It is a plan that lays out these first steps to solve decades of neglect and discrimination, and it places the work of forty-five city agencies in a singular framework.”

The racial equity plan is mandated by the city’s charter following ballot reforms passed by voters in 2022. While a draft was due in early 2024 under former Mayor Eric Adams, the finalized plan was completed but never released during his tenure. The Commission on Racial Equity sued the city and Adams in August for failing to publish the plan on time. Mamdani vowed earlier this year to release the plan within his first 100 days in office.

Notably, Mamdani’s preliminary plan calls for applying “a racial equity framework to all new housing proposals to ensure fair geographic investment.” However, New York City’s new racial equity policies are already drawing scrutiny, especially from the federal government, as the Trump administration continues to roll back discriminatory diversity, equity, and inclusion (DEI) programs around the country. “Sounds fishy/illegal,” Harmeet Dhillon, Assistant Attorney General for the Department of Justice’s (DOJ) Civil Rights Division, wrote in a post on X (formerly Twitter), adding, “Will review!”

The “True Cost of Living” report, also released on Monday, found 62 percent of New Yorkers—over 5 million residents—earn less than what is needed to live in the city. Additionally, the report estimates the cost of living for a family with children at over $159,000, while the median income stands at $124,000.

Prior to his election, Mamdani suggested imposing higher taxes on “whiter” neighborhoods.

Image by Marc A. Hermann / MTA.

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4 hours ago
Immigration

Trump Will Start Sending Deportees to This African Nation Later This Month.

PULSE POINTS

❓WHAT HAPPENED: The Democratic Republic of the Congo (DRC) has agreed to accept illegal immigrants from third countries who have been deported from the United States under a temporary agreement.

👤WHO WAS INVOLVED: The Congolese Ministry of Communications, the Trump administration, and illegal immigrant deportees.

📍WHEN & WHERE: The agreement was announced on Sunday, April 5, 2026, with deportees expected to arrive in the Democratic Republic of the Congo later this month.

💬KEY QUOTE: “This stay is not intended to become a mechanism for permanent settlement on national territory. Each situation will be subject to individual review in accordance with the laws of the Republic and national security requirements,” stated the Congolese Ministry of Communications.

🎯IMPACT: Since the start of his second term in January 2025, President Donald J. Trump has struck third-country deportation agreements with at least seven African nations. The deals are intended to discourage illegals from attempting to disrupt direct deportation to their home countries by ensuring they are still sent out of the United States.

IN FULL

The Trump administration will begin sending illegal immigrant third-country deportees to the Democratic Republic of the Congo (DRC) under a new agreement announced on Sunday. According to DRC officials, the Central African nation expects the first round of deportees to arrive later this month under what they say is a temporary arrangement with the United States.

“This stay is not intended to become a mechanism for permanent settlement on national territory. Each situation will be subject to individual review in accordance with the laws of the Republic and national security requirements,” the Congolese Ministry of Communications said in a statement, adding that the agreement is “temporary” and is due in part to the DRC’s “commitment to human dignity and international solidarity.”

While the U.S. is reportedly covering the costs of the deportation program, the Congolese government has provided few additional details, including the number of deportees expected.

Since the start of his second term in January 2025, President Donald J. Trump has struck third-country deportation agreements with at least seven African nations. The deals are intended to discourage illegals from attempting to disrupt direct deportations to their homelands by ensuring they are still removed from the United States.

The United States often conditions additional humanitarian aid or other economic assistance packages on the agreements’ acceptance. In the case of the DRC, the country may see the agreement as potential leverage to secure U.S. support in its dealings with Rwanda over a peace deal brokered by the Trump administration. Additionally, it is believed the deal includes significant American investments in Congo’s mining sector.

Image by Antoine Moens de Hase.

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4 hours ago
Crime

Vape Shop Owners Are Using Their Businesses to Lure and Groom Children.

PULSE POINTS

❓WHAT HAPPENED: A vape shop owner in London, England, was found guilty of grooming and raping a 14-year-old girl.

👤WHO WAS INVOLVED: The victim, known as Erin, the perpetrator, Iqbal “Tony” Singh, Erin’s mother, and British police.

📍WHEN & WHERE: The grooming occurred at a vape shop in Cheam, South London; Singh was sentenced recently.

💬KEY QUOTE: “He knew that having vapes and having this kind of business was exactly how he would be able to meet younger children and groom them and gain their trust to get what he wanted,” Detective Sergeant Toyene Lait said of Singh.

🎯IMPACT: Calls for stricter checks on vape shop owners and a warning to children about the dangers of exploitation in vape shops.

IN FULL

A vape shop owner in London, England, has been sentenced to 14 years in prison for raping and sexually assaulting a 14-year-old girl. The proprietor, Iqbal “Tony” Singh, groomed the girl, referred to as “Erin,” and her friends. He lured them in with colorful, flavored vapes, initially offering the products for free to win their trust.

“He knew that having vapes and having this kind of business was exactly how he would be able to meet younger children and groom them and gain their trust to get what he wanted,” commented Detective Sergeant Toyene.

Once inside the shop, Singh would take schoolchildren into a back room, where he supplied them with alcohol and illegal vapes containing THC. Erin was assaulted there on several occasions. Speaking to British media, Erin urged other young people not to feel pressured into vaping to fit in, and called for much stricter background checks on vape shop owners and staff to prevent.

Singh’s case highlights wider concerns about the vape shops becoming hubs for child sexual exploitation and organized crime, in both the United Kingdom and the United States. Separate investigations in Britain have uncovered foreign criminal networks using illegal immigrants and asylum seekers without the right to work to run stores involved in selling vapes to children as young as 12.

Many vape stores are unregistered and sell hazardous products, with one in Glasgow, Scotland, recently causing a fire that burned down a 175-year-old landmark and shut down the country’s largest railway station for days.

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5 hours ago
Corruption
Crime

Dem State Can’t Audit $1.3 Billion in Childcare Funds Due to Missing Records.

PULSE POINTS

❓WHAT HAPPENED: Washington State auditors revealed that over $1.3 billion in childcare subsidies from 2021 to 2024 are unauditable due to missing records and poor tracking systems.

👤WHO WAS INVOLVED: The Washington State Auditor’s Office, the Department of Children, Youth and Families (DCYF), and state officials.

📍WHEN & WHERE: The audit covered spending from 2021 through 2024 in Washington State.

💬KEY QUOTE: “Determining fraud requires criminal evidence and can only be done by enforcement agencies in conjunction with the judicial system.” — Washington State Auditor’s Office

🎯IMPACT: Washington taxpayers are left with unanswered questions about the allocation of over $1.3 billion, with concerns about fraud and oversight failures mounting.

IN FULL

Government auditors in Democrat-dominated Washington State say that more than $1.3 billion in spending through the state’s childcare subsidy system cannot be verified. The audit, covering 2021 through 2024, revealed that the Department of Children, Youth and Families (DCYF) failed to maintain the necessary records to track federal childcare funds at the provider level, leaving a slew of expenditures and other payments unaccounted for.

Concerningly, the financial review found in 2024 that $416 million was unauditable, with $356 million in 2023, $268.5 million in 2022, and $293 million in 2021. The State Auditor’s Office (SAO) described the situation as “serious and troubling,” noting that it had to “disclaim” the entire program due to the lack of documentation.

Notably, another audit in 2025 uncovered $37 million in questionable payments within a single year, linked to missing attendance records, overbilling, and insufficient documentation. DCYF admitted to $2 million in overpayments, while auditors noted it was “impossible” to trace payments for four consecutive years. Internal reviews revealed that 67 percent of audits identified overpayments, raising concerns about the system’s ability to prevent errors before funds are distributed.

Critics argue that the program operates on a “pay first, verify later” model, with no reliable way to confirm whether services were actually provided. However, the state auditor notes that the agency is unable to investigate and determine whether fraud occurred or what portion of the $1.3 billion in unverified spending is the result of criminal activity.

“Determining fraud requires criminal evidence and can only be done by enforcement agencies in conjunction with the judicial system,” the state auditor contends, adding, “We are a reporting agency, not an enforcement agency. The responsibility for correcting problems uncovered by audits lies with the leaders and managers of the agency, as well as with federal entities who distribute the funds.”

Image via Seattle City Council.

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6 hours ago
Culture
UK

Starmer Urged to Ban Kanye West From Britain So He Can’t Headline Festival.

PULSE POINTS

❓WHAT HAPPENED: Jewish groups and Members of Parliament (MPs) in Britain have urged the Wireless Festival to cancel Kanye West’s headline booking.

👤WHO WAS INVOLVED: Kanye West, known as Ye; Prime Minister Sir Keir Starmer; the Campaign Against Antisemitism; the Board of Deputies of British Jews; festival sponsors Pepsi, Diageo, and PayPal.

📍WHEN & WHERE: Wireless Festival, July 10-12 in Finsbury Park, north London, England.

💬KEY QUOTE: “It is deeply concerning Kanye West has been booked to perform at Wireless despite his previous antisemitic remarks and celebration of Nazism.” – Prime Minister Starmer

🎯IMPACT: Festival sponsors, including Pepsi, Diageo, and PayPal, have withdrawn their support, and calls have increased from Members of Parliament and Jewish organizations to deny entry to West.

IN FULL

Several Members of Parliament (MPs) in the United Kingdom, including Prime Minister Sir Keir Starmer, have joined various Jewish organizations to criticize Wireless Festival, an annual hip-hop festival in London, for scheduling rapper Kanye West. “It is deeply concerning Kanye West has been booked to perform at Wireless despite his previous antisemitic remarks and celebration of Nazism,” Starmer said.

West’s previous antisemitic actions include releasing a song titled “Heil Hitler” and selling a T-shirt with a Nazi swastika on the front. West has also described himself as a “Nazi” and posted on social media about going “death con 3 on Jewish people.” Consequently, the British government faces mounting pressure from MPs and Jewish organizations, including the Campaign Against Antisemitism and the Board of Deputies of British Jews, to bar West from entering the country.

Since it was announced that West would be headlining Wireless Festival in July, several sponsors have pulled out, including beverage giants Pepsi and Diageo. Furthermore, PayPal announced that its branding will no longer appear on promotional material for the festival. It is expected to attract 50,000 attendees per day and remains under pressure to disinvite West.

The rapper has previously apologized for his remarks and behavior, attributing them to bipolar disorder. In January, he took out a full-page advertisement in The Wall Street Journal, stating, “I am not a Nazi or an antisemite,” and expressing regret for his actions.

Image by Peter Hutchins.

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6 hours ago
Bonkers Britain
Culture
Religion

Art Exhibition Portrays Christian Saint as Asian Transgender.

PULSE POINTS

❓WHAT HAPPENED: Saint Sebastian has been depicted as an Asian transgender man in a new art exhibit at London’s National Gallery.

👤WHO WAS INVOLVED: Singaporean artist Ming Wong, The National Gallery in London, transgender models, and Christians.

📍WHEN & WHERE: The exhibit is currently displayed at the National Gallery as part of the institution’s Modern and Contemporary Programme.

💬KEY QUOTE: “There isn’t a better time to reimagine the stories that these characters and creatures inhabiting these worlds can tell one another, and their exchanges that cross centuries and civilizations beyond the frames.” – Ming Wong

🎯IMPACT: The exhibit has sparked criticism and backlash from Christians, social media users, and the British tax-paying public.

IN FULL

A new art exhibit at London’s National Gallery portrays Saint Sebastian, an early Christian martyr, as an Asian transgender. Created by Singaporean artist Ming Wong, the exhibit uses transgender models to portray the saint in a series of videos. “There isn’t a better time to reimagine the stories that these characters and creatures inhabiting these worlds can tell one another, and their exchanges that cross centuries and civilizations beyond the frames,” Wong argues.

Supposedly inspired by St. Sebastian’s martyrdom, in which he was shot to death with arrows by Roman soldiers while bound to a tree or pillar, the exhibit depicts transgender models listening to a seashell, dancing, and performing martial arts. The exhibit also includes audio of a Latin translation of British art historian Kenneth Clark’s final monologue from Civilisation, a seminal 13-part series released in 1969 by the British Broadcasting Corporation (BBC). The series provides a history of Western culture and is highly regarded by conservatives.

St. Sebastian was martyred after he was found converting Roman officials to Christianity and providing aid to imprisoned Christians in the third century. The saint was executed on the orders of Roman Emperor Diocletian, who led the infamous Great Persecution of the early Christians, and is a symbol of enduring Christian faith and male beauty.

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7 hours ago
Economy
War

Top Moody’s Economist Warns Prices Will Stay High Even After the Iran War Ends.

PULSE POINTS

❓WHAT HAPPENED: Mark Zandi, the chief economist at Moody’s, believes high price levels are likely to persist even after hostilities with Iran end.

👤WHO WAS INVOLVED: Mark Zandi, chief economist at Moody’s, investors, and the U.S. economy.

📍WHEN & WHERE: Comments made in March and April 2026.

💬KEY QUOTE: “I don’t think we’re going back to the pre-war prices for the foreseeable future. Certainly won’t be this year, won’t even be next year. Might not be ever.” – Mark Zandi

🎯IMPACT: The prediction suggests long-term elevated prices, with the possibility of a recession later this year.

IN FULL

Mark Zandi, the chief economist at Moody’s, says he believes high price levels are likely to persist even after hostilities with Iran end. In addition, Zandi has warned that the stock market is becoming increasingly detached from the American economy, which he thinks could be causing many to underestimate the odds of a recession.

“I don’t think we’re going back to the pre-war prices for the foreseeable future. Certainly won’t be this year, won’t even be next year,” the Moody’s chief economist said in a recent economic briefing, adding, “Might not be ever.”

In February, Zandi stated that he believes “there are times when I feel markets are overdone and increasingly disconnected from the economy,” suggesting we may be in such a moment.

In late March, economic turbulence and price volatility led Zandi to conclude that a recession is “more than likely by the second half of the year.” These concerns are underpinned by the recent and significant downward revision of jobs shed by the economy in February. While the initial government report indicated 92,000 jobs were lost in February, the most recent revision—issued late last week—shows that 133,000 jobs were actually lost that month.

“Investors are simply investing on the faith that [stock and commodity] prices will rise quickly in the future because they have in the recent past,” Zandi contends. “Markets risk moving in a big way, causality is reversed, and falling asset prices threaten an already vulnerable economy. This is one of those times.”

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