🇺🇸US Services Slump Sparks Recession Warnings – Will the Fed Act in Time?
The U.S. economy just flashed another red flag.
The ISM Services PMI has now printed three consecutive months of weakness — May at 49.9, June at 50.8, and now further signs of slowdown. Meanwhile, inflationary pressure remains elevated, with the “Prices Paid” subindex surging to a cycle high of 69.9 — a clear stagflationary signal.
One industry comment summed it up:
"Tariffs are inflating costs so drastically that we’re delaying other projects just to cope."
Markets reacted swiftly.
🔻 Bitcoin (BTC) dipped 2% to $112,800
🔻 Nasdaq reversed gains to close 0.5% lower
Economists are sounding alarms. Mark Zandi noted:
"The economy teeters on recession. Consumer spending is flat, and job revisions are down. Inflation is up — leaving the Fed with little room to maneuver."
Hoisington’s Lacy Hunt adds:
"The Fed should pivot fast. Waiting could deepen the global contraction."
📉 Will the Fed step in before it’s too late?
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