FEDFUNDS UNRATE Pre-recession pattern activated since Aug'23. FEDFUNDS <= Max of the Economic Cycle (EC) UNRATE > Min of EC 10y-2y > Min of EC 10y-3m > Min of EC
Initial unemployment claims finally broke out. A clear break above the weekly moving average ribbon has occurred, and this always happens near the start of a recession.
Another jobs report where a major labor scarcity is being reported. It is hard to imagine wage inflation not becoming entrenched in the face of such scarcity. The last time labor was as scarce was in 1969 right before we entered a decade of stagflation, and stock market stagnation.