RATE REDUCTION?

The unemployment rate is currently 4%. Pre-Covid, it was 3.5%. Moreover, eight of 12 sectors have jobless rates above their pre-Covid levels, and two sectors are very close. The labor market has fully reverted. Moreover, Pre-Covid core PCE was 1.65%, two years ago it was 5.07%, last year it was 4.69%, it’s now 2.57%. With inflation rapidly falling, and unemployment steadily rising, the Fed should prepare for a September cut.