Fox Business host Charles Payne highlighted several “red flags” in the economy on Wednesday ahead of the Federal Reserve’s decision to lower its federal funds rate target range by 0.50%.

This move comes as inflation dropped to 2.5% last month, alongside weaker-than-expected job growth in July and August. On “Making Money with Charles Payne,” he pointed out three negative economic indicators influencing the Fed’s decision.

“Let’s talk about historically now. Okay, our first rate cut, going back 14 recessions … Unemployment rate in the past year, typically going into an unemployment rate with the recession, right, up 9% without a recession, down 10% … The unemployment rate is rising so much faster than normal before first rate cut,” Payne stated. “Real GDP, this is actually pretty good.”

Standing in front of a chart from The Kobeissi Letter, which offers commentary on global capital markets, Payne labeled the year-over-year unemployment rate of 12.2% as a “red flag.” He noted that the real GDP year-over-year of 2.6% is “okay.”

“But look at this, the U.S. debt up 123%. Obviously, a red flag,” he added. “Savings rate has plummeted, 2.9%, normally it’s at 8.8% … We had a lot of red flags here.”

This rate cut marks the first shift in Federal Reserve policy since July 2023, after the Federal Open Market Committee (FOMC) held rates at a 23-year high of 5.25% to 5.50% for eight consecutive meetings. The decision follows a downward revision of over 800,000 jobs for the period between April 2023 and March 2024.

Additionally, the U.S. is currently facing its highest credit card delinquency rate in over a decade, with nearly 10% of credit card balances becoming past due in the past year, according to the Federal Reserve Bank of New York.