The latest job numbers have sparked concerns about a potential recession, as job growth in July fell far short of expectations with just 114,000 new jobs added. This disappointing data, coupled with an increase in the unemployment rate to 4.3%, has economists worried that the Federal Reserve may have waited too long to take action.
Federal Reserve Chair Jerome Powell is facing criticism for what some are calling a “serious mistake” in his handling of the rising jobless rate. The fear is that the Fed’s delayed response to economic indicators may have exacerbated the risk of a recession. While a recession indicator is flashing red, the creator of the ‘Sahm rule’ suggests that this time could be different, implying that unique economic factors may be at play.
Overall, the job market’s performance in July has set off alarm bells about the economy’s health and the potential for a recession. With job growth significantly underperforming expectations and the unemployment rate on the rise, concerns about the timing and effectiveness of the Federal Reserve’s response have intensified. As indicators point towards a possible downturn, experts remain divided on whether this time will indeed be different.
