speculation about the economy's future and the possibility of a recession.. The report revealed that employers are hiring at a slower rate, and the unemployment rate has risen to its highest level since October 2021.Fed decided against cutting rates
in an effort to control inflation. This decision was made before the July jobs report was released, leading investors to panic and start selling off their stocks, fearing a worsening market. As for why the Federal Reserve doesn't hold an emergency meeting to cut interest rates and stabilize the market, experts say that theAdditionally, cutting rates could signal to the market that the situation is worse than it appears, potentially causing further panic., reported by Bloomberg, have now estimated a 25% chance of the U.S. entering a recession, a significant increase from their previous prediction of 15%.
To mitigate the risk of a recession, the economists suggest that the Federal Reserve should consider cutting interest rates. They predict that job growth will improve slightly in August, prompting the Fed to implement a 0.25% interest rate cut by September. If job growth remains slow, the cut could be even larger.