Part 3/12:
Labor data paints a worrying picture: job openings have plummeted, and job growth is slowing rapidly. Indicators such as the JOLTS report show a collapse, with expectations that the labor market could freeze by early 2025, prompting fears of a looming recession. Despite official unemployment figures near 4%, the underbelly reveals a softer, weakening economy.
Analysts observe that traders are adjusting their expectations, betting on rate cuts by the Federal Reserve occurring as early as July or September, particularly as inflation signals weaken. The government's capacity to stimulate the economy through rate cuts and money-printing is likely to intensify as the upcoming presidential election approaches.