U.S. employment data worsens, and the Fed's interest rate cut may exacerbate the wealth gap.

Analysts from [Bitpush] indicate that the U.S. labor market is deteriorating rapidly. In the latest data, the figures for May and June were revised down by -258,000 jobs, which is more than the total population of Scottsdale, Arizona. So far this year, U.S. jobs have been reduced by 461,000, and many leading indicators of the labor market are collapsing.

This means that the Federal Reserve will lower interest rates to curb inflation, but as inflation rebounds, those without assets will face a situation similar to the post-pandemic era. Wage growth will lag behind inflation, and the wealth gap will widen. Historically, every time the Federal Reserve has lowered interest rates to a maximum level below 2%, the S&P 500 index has averaged a +13.9% increase in the following 12 months, and asset owners will celebrate like in 2021.