The U.S. is on the cusp of a major economic downturn, according to a leading economist who served on Ronald Reagan's Council of Economic Advisers, despite such fears having abated for many.

In a recent interview, Steve Hanke, currently a professor of applied economics at Johns Hopkins University, described the contraction in the U.S. money supply—the total amount circulating in the economy—as a "harbinger of things to come."

"I think things will continue to show weakness and slow down in the United States and probably end up tipping into a recession later this year," he added.

Why It Matters

The delayed imposition and inflationary impacts of tariffs, the easing of trade tensions with countries like China, as well as robust GDP growth in the second quarter, has prompted some economists

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