US Labor Market Weakness Signals Potential Fed Rate Cut, Says Milken Institute Economist

Overview

William Lee, Chief Economist at The Milken Institute, believes the US labor market has weakened sufficiently to justify a 50 basis point rate cut by the US Federal Reserve. Despite rising unemployment to 4.4%, he expects the Fed to hold rates steady in December due to policy caution. Lee also commented on the AI market, advising long-term investors to focus on cash flow timing rather than bubble concerns, and described the US economy as 'K-shaped' with widening wealth gaps.