Claudia Sahm Contradicts Her Own Recession Indicator But Underscores That Elevated Risks Are 'Strengthening' The Case For Fed Rate Cuts
Portfolio Pulse from Kaustubh Bagalkote
Economist Claudia Sahm has contradicted her own recession indicator, the Sahm Rule, stating that the U.S. is not currently in a recession but faces elevated risks. She advocates for potential interest rate cuts by the Federal Reserve. The recent weak jobs report has caused market turmoil, notably affecting the SPDR S&P 500 ETF Trust (NYSE:SPY).
August 08, 2024 | 9:54 am
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The SPDR S&P 500 ETF Trust (NYSE:SPY) experienced a significant sell-off following a weak July jobs report, which has added to market turmoil. Claudia Sahm's comments on elevated recession risks and potential Fed rate cuts could further impact SPY's performance.
The weak jobs report has already caused a sell-off in SPY, and Sahm's comments on elevated recession risks and potential Fed rate cuts could lead to further market volatility, negatively impacting SPY in the short term.
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IMPORTANCE 70
RELEVANCE 80