Recession fears in the US are growing:
The Sahm Rule is an economic indicator suggesting a downturn once the unemployment rate increases 0.5 percentage points above its previous 12-month low.
In previous business cycles, every time this indicator crossed above the 0.5% threshold a recession followed.
It now stands at 0.4%, just 0.1 percentage points away from signaling a recession in the US.
The unemployment rate would need to rise to 4.2% in this week’s jobs report to break the threshold.
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