On Black Friday, a heavy hammer hit the US labor market - the big non-farm payrolls report, like a nuclear explosion-level news that shocked the market, making people feel nervous. The unemployment rate unexpectedly climbed to a high of 4.3%. This figure not only touched the sensitive nerve of economic early warning - Sam's Law, but also indicated that the US economy may be quietly entering the shadow of recession.
The alarm bell of Sam's Law sounded, warning us that when the gap between the unemployment rate and the average of the past year exceeds 0.5 percentage points, it is often a harbinger of economic weakness. Now this gap has become apparent, which undoubtedly casts a huge stone on the market.
The Fed's position is particularly embarrassing at this moment. Previously, its head Powell vowed to deny the possibility of an economic recession many times in Congress and interest rate meetings, but reality refuted it in the most direct way. What is more worrying besides the rising unemployment rate is that employment growth is far from meeting market expectations. The expected 175,000 new jobs were actually only 114,000. This huge gap undoubtedly exacerbated the panic in the market.
In the next two months, the Fed will remain silent and not hold interest rate meetings, which means that the market will have to face this period of uncertainty alone until the dawn of expected interest rate cuts in September may appear. For the general public, the pressure on their wallets may increase day by day during this period; and for Fed Chairman Powell, the outside world's doubts and criticisms will also follow him like a shadow, and the media may launch a fierce attack on his decision of "why not to cut interest rates in July".
In this context, we should be more vigilant, adjust strategies in time, and look for safe havens that can provide shelter in the storm. The market has experienced a sharp drop. Next, I will prepare some currencies suitable for bargain hunting as a return plan. If you get lost, come find me! $BANANA $ZRO $ZK