MEDIA ADVISORY - Soydemir: Business Forecast Indicates Valley Employment at Crossroads Amid Generational High Interest Rates

Experts Urge Interest Rate Cuts to Avert Further Market Contraction and Job Losses into 2024

Turlock, CA (12/19/2023) — With a continued slowdown in the national economy and the San Joaquin Valley that began in early 2022, the Federal Reserve has announced three rate cuts for 2024.

Experts caution that without intervention, the labor market's downturn - evident from unprecedented declines in employment during the normally robust months of July and August - could reach a critical crossroads. Rate cuts in 2024 will likely avert a more serious contraction that would last into 2025.

To safeguard against economic uncertainties, Valley residents should consider the following measures:

• Maintain a larger cash reserve,
• Delay buying a home and opt to rent,
• Shift from fixed to flexible interest rate options,
• Invest in bonds, and
• Consider leveraging student loans to acquire new skills in the event of job layoffs.

These recommendations form part of the outlook for the upcoming year as detailed in the biannual San Joaquin Valley Business Forecast, produced by Gokce Soydemir, the Foster Farms endowed professor of business economics at Stanislaus State.

• Read the media advisory.
• Learn more about the San Joaquin Valley Business Forecast.
• Read the report.