According to Jinshi, Goldman Sachs economists said that the U.S. labor market is at an "inflection point" and any further weakness in demand for workers will affect employment. Economist Jan Hatzius wrote that the strength of labor demand is unclear at present, and the number of initial and continuing unemployment claims has risen in recent weeks. Hatzius said that although the Fed's forecast last week was "unexpectedly tough", they were satisfied with the forecast of two rate cuts in September and December. He also pointed out that reports for the rest of the year are expected to show that core commodity prices are flat, and housing and non-housing core service inflation will gradually slow down. As for the outlook for economic growth, Hatzius believes that the recent economic slowdown is likely to continue.
