Kamala Gets Bad News Just Before Tuesday’s Debate

The U.S. economy added 142,000 jobs in August, and the unemployment rate slightly dropped to 4.2% from 4.3%, according to the Labor Department's latest report. This lower-than-expected job growth (compared to the projected 161,000) signals a slowdown in the labor market. Additionally, July's job creation was revised down to 89,000, and June's figures were adjusted to 118,000, indicating that the job market has been cooling for months.

Despite this slower growth, employment continues to rise, although at a more modest pace. Over the last 12 months, the unemployment rate has slightly climbed, signaling potential cracks in the labor market. Federal Reserve Chair Jerome Powell previously stated that the Fed does not support further significant weakening in the labor sector, and these numbers may play a key role in the Fed's upcoming decision regarding interest rate cuts.

CBNC’s “Squawk Box” addressed the concerning employment figures and discussed how they could impact the economy and Vice President Kamala Harris's election run against Donald Trump. Panelists noted that rising inflation, higher interest rates, and consumer stress could eventually lead to a recession, even though employment data typically lags behind other economic indicators.

One of the show’s guests pointed out that many companies have paused hiring, with layoffs potentially looming. This slowing job growth, along with tightening monetary policy, could push the economy toward a more traditional recession scenario. Panelist Betsy agreed, stating that the labor market is “definitely weakening,” which may impact consumer spending and the broader economy. She emphasized that the Federal Reserve needs to act quickly to reduce interest rates to prevent a deeper downturn.