Financial markets responded within minutes of the update’s release:
The -0.3 pp revision in EP 347 is the largest downward adjustment since EP 338 (Q4 2024). This suggests that the initial “advance” estimate was overly optimistic, and the economy is cooling faster than real-time indicators suggested.
The 2026 update reveals that post-2023, US money market funds increased their lending to shadow banks by 140%. Leverage ratios in private credit now exceed 1:45—worse than 2007. Dr. Thorne, now a retired whistleblower, tells Emily: “We updated the risk models, but no one updated the law.”
Financial markets responded within minutes of the update’s release:
The -0.3 pp revision in EP 347 is the largest downward adjustment since EP 338 (Q4 2024). This suggests that the initial “advance” estimate was overly optimistic, and the economy is cooling faster than real-time indicators suggested.
The 2026 update reveals that post-2023, US money market funds increased their lending to shadow banks by 140%. Leverage ratios in private credit now exceed 1:45—worse than 2007. Dr. Thorne, now a retired whistleblower, tells Emily: “We updated the risk models, but no one updated the law.”
