According to Coin World News, on January 5, former Merrill Lynch analyst David Rosenberg said that the U.S. economy will face many difficulties in 2026, and the job market is likely to contract sharply, weakening the economy and forcing the Federal Reserve to respond with sharp interest rate cuts. The biggest surprise will be the realization that the labor market is not cooling, but shrinking. David Rosenberg believes that the US unemployment rate will soon exceed 5% and that "it is likely to test 6% by the end of the year." The collapse of the labor market, with the ensuing recession, will force the Fed to cut interest rates by 125 basis points to 2.25% by the end of 2026, or five 25 basis point cuts.