PANews reported on August 11 that according to Jinshi, Claudia Sahm, the founder of the Sam Rule and chief economist of New Century Advisors, personally published an article stating that the US economy has not yet fallen into recession, but it is "uncomfortably close to a recession" and it is time for the Federal Reserve to cut interest rates. Claudia Sahm said that the risk of a recession has increased, which strengthens the reason for the Federal Reserve to cut interest rates. The rise in unemployment over the past year, as reflected in the Sam Rule, now looks to be beyond normal levels, and the degree of proximity to a recession is disturbing. Now is the time for the Federal Reserve to use its own tools and lower interest rates.
It is reported that Sam's Law is an indicator that predicts an economic recession. It believes that once the three-month moving average of the unemployment rate is 0.5 percentage points higher than the low point of the past year, it means that a recession has begun.
