U.S. Economy Could Be Heading Towards Recession According to JPMorgan Chase Following Revised Job Growth Figure of 258,000
JPMorgan Chase Warns of Possible Recession as US Job Market Slows
In a recent development, JPMorgan Chase has issued a stark warning about the potential for a recession in the US economy. The bank's warning is primarily based on significant downward revisions to May and June job growth figures and weak July jobs data.
The July jobs report showed a paltry payroll growth of approximately 73,000, well below expectations. This disappointing figure is in stark contrast to earlier reports of a stronger labor market, which had complicated expectations for Federal Reserve rate cuts. The revised weak job data has raised concerns about the health of the US economy.
May and June job numbers have also been significantly revised downward. The number of jobs created in May was revised from 144,000 to 19,000, and from 147,000 to 14,000 in June. This brings the average job gains for the past three months to roughly 35,000, indicating a sharp slowdown in hiring.
JPMorgan interprets this labor market softness as a recession signal. The revised weak job data contrasts earlier reports of a stronger labor market that had complicated expectations for Federal Reserve rate cuts.
Based on this, JPMorgan forecasts four 25 basis point rate cuts by the Fed in 2025, starting with a cut anticipated between September 16-17, lowering rates to between 3.25%-3.5% by the end of the year.
This view aligns with concerns from other economists like Moody’s Analytics’ Mark Zandi, who said the economy is "on the precipice of recession," citing flat consumer spending, contracting construction and manufacturing, and rising inflation that limits the Fed’s options.
Thus, JPMorgan Chase’s recent warning is that the combination of significantly revised lower job growth and weak July labor data signals a recession risk for the US economy, leading them to predict upcoming Fed rate cuts to mitigate the downturn.
Meanwhile, in other news, the BYDFi Card has officially launched, bridging Web 3.0 assets and real-world spending. CARV's AI Stack is being used by builders to prove what's possible, and Caldera has announced a partnership with EigenCloud to integrate EigenDA Version Two. Stay tuned for more updates on these and other developments in the tech and finance sectors.
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Cryptocurrency market watchers may want to take note of JPMorgan Chase's recent warning about a potential recession in the US economy, given the significant downward revisions in job growth figures over the past few months. This suggests a possible recession signal based on the revised weak job data, which might lead to Federal Reserve rate cuts in the near future as a response to mitigate the downturn. As for developments in the tech and finance sectors, the BYDFi Card has officially launched, connecting Web 3.0 assets with real-world spending, while CARV's AI Stack is being utilized by builders to demonstrate innovative possibilities, and Caldera enters a partnership with EigenCloud to integrate EigenDA Version Two.
