According to Seema Shah, Chief Global Strategist at Principal Global Investors, the slowdown in the US labor market is now more evident. The rise in labor participation rate is certainly good news, as it diminishes the recession signal triggered by the Sam rule. Nevertheless, a rate cut in September is a certainty, and the Federal Reserve will hope that they do not act too slowly once again.
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Institutions: Rate cut in September is almost certain, and the Federal Reserve needs to beware of acting too slowly
According to Seema Shah, Chief Global Strategist at Principal Global Investors, the slowdown in the US labor market is now more evident. The rise in labor participation rate is certainly good news, as it diminishes the recession signal triggered by the Sam rule. Nevertheless, a rate cut in September is a certainty, and the Federal Reserve will hope that they do not act too slowly once again.