Kansas City Fed Labor Index Falls Again, Raising Fresh U.S. Recession Fears
Alphractal has issued new warning about the U.S. economy, highlighting that the Kansas City Fed Labor Market Conditions Indicators (LMCI) have declined once again.
This continued downtrend strengthens concerns that a recession may become unavoidable if conditions don’t improve.
The LMCI is a composite metric built on 24 key labor market indicators, including job creation, unemployment rates, wage growth, job openings, and initial jobless claims.
When the LMCI remains in positive territory, it signals a strong, healthy labor market.
However, repeated declines suggest a weakening labor force and the growing risk of a broader economic slowdown.
According to Alphractal’s analysis, the labor market — a crucial pillar of the U.S. economy — is losing momentum.
If this continues, the likelihood of a recession significantly increases. The market is beginning to factor in this possibility, indicating that investors and policymakers alike should remain vigilant. 
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
