New jobs numbers raise alarm bells on US recession risk

AXIOS.COM

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SUMMARY

The U.S. economy is showing signs of distress, as indicated by weak July employment numbers and rising unemployment rates. Job creation was below expectations, with the unemployment rate increasing to 4.3%, up from 4.1% in June. This rise, coupled with a significant decline in hiring rates and manufacturing activity, suggests potential recession ahead. Markets responded, with the S&P 500 dropping 2.5% and Treasury yields declining.

Experts warn that "yellow flags had started to pop up," now turning "red." The Federal Reserve faces pressure to cut rates, which experts believe need to happen sooner to mitigate economic weakness.