Bloomberg Surveillance

Surveillance: Forget About Fed Cut, says Sahm

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Jun 20, 2023
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INSIGHT

State Recessions and the Sahm Rule

  • Around 10 states are in recession based on the Sahm Rule, showing rising unemployment.
  • The Sahm Rule, while nationally focused, provides insights into individual state economies.
INSIGHT

Consumer Spending vs. Unemployment

  • Consumer spending data reflects high-income individuals more than lower-income individuals.
  • The unemployment rate offers a more balanced view of economic health.
ADVICE

Interpreting the Fed's Hawkish Pause

  • The Federal Reserve's "hawkish pause" signals a likely two more rate increases.
  • This suggests a 50% or greater chance of needing further rate hikes.
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