Federal Reserve might Rate Cut Sharply due to the deteriorating US Labour Markets Indicators to curb Rising Inflation. Stock and Crypto markets might Surge due to RATE CUTS.
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U.S. Labor Market Decline May Spark Federal Reserve Rate Adjustments, Analysts Say
According to BlockBeats, analysts have highlighted a rapid deterioration in the U.S. labor market. Recent data revisions for May and June show a reduction of 258,000 jobs, surpassing the population of Scottsdale, Arizona. So far this year, U.S. employment figures have been adjusted downward by 461,000 positions, with several leading indicators of the labor market showing signs of collapse.This situation suggests that the Federal Reserve may lower interest rates to curb inflation. However, as inflation rebounds, individuals without assets could face challenges similar to those experienced in the post-pandemic era. Wage growth is expected to lag behind inflation, potentially widening the wealth gap.Historically, when the Federal Reserve has reduced interest rates to below 2%, the S&P 500 index has averaged a 13.9% increase over the following 12 months. Asset owners may experience gains reminiscent of 2021.
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