TechFlow reported on August 2, citing Jinshi Data, that Wasif Latif, President of Sarmaya Partners, pointed out the U.S. unemployment rate may continue to rise, and it might already be too late for the Federal Reserve to cut interest rates in September. The market has recognized the reality of economic slowdown, with July's non-farm payroll data showing signs of "growth scare." As an autoregressive function, once the unemployment rate begins to move, it typically continues in that direction.
He emphasized that the Fed's failure to timely implement rate cuts could be a strategic mistake. Historical experience shows they often react with delay, ultimately leading to slower economic growth. In the current market environment, investors are inclined to shift toward high-quality assets, which is expected to drive bond prices higher.
