Sam's Rule founder: It's time for the Fed to cut interest rates

Claudia Sahm, the chief economist of New Century Advisors, the founder of the Sahm Rule, personally stated that she believes the US economy has not yet entered a recession, but has "alarmingly approached a recession", and it is time for the Federal Reserve to cut interest rates. Claudia Sahm said that the risk of an economic recession has increased, which strengthens the reason for the Federal Reserve to cut interest rates. The rise in the unemployment rate over the past year, as reflected in the Sahm rule, now appears to have exceeded normal levels and is approaching an alarming level of recession. It is time for the Federal Reserve to use its tools and lower interest rates.

It is reported that the Sahm rule is an indicator that predicts an economic recession. It believes that once the three-month moving average of the unemployment rate is 0.5 percentage points higher than the low point of the past year, it means that an economic recession has begun.