Understanding the Triggering of the Sahm Rule and Its Economic Implications
Monday, 5 August 2024, 06:59
Sahm Rule Triggered
The Sahm rule, designed to indicate the start of a recession, has officially been triggered.
Current Economic Condition
The three-month moving average of the unemployment rate has reached 0.5% above the low recorded in the last twelve months.
Historical Context
Bank of America provided insights into the historical context of the Sahm rule, detailing previous instances when this metric was triggered and its implications for the economy.
Implications for the Future
- Possible changes in consumer confidence
- Adjustments to consumer spending
- Economic shifts that may follow this indicator
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.