[Music] The labor department reported weaker Than expected job growth for the month Of August the economy added 142,000 new Jobs last month that's about 18,000 jobs Short of what Economist had predicted Meanwhile the unemployment rate ticked Down slightly to 4.2% President Biden said in a statement On Friday quote with inflation back down Close to normal levels it's important to Focus on sustaining the historic gains Have made for American workers CBS News Senior Business and Technology Correspondent jooling Kent joins me now So jooling when it comes to the feds and Cutting rates so often seemingly bad Reports are actually good so what stands Out to you from these numbers look this Is a solid jobs report from August but It also missed Economist expectations so Taking those two factors into account we Can expect the Federal Reserve chared Powell to cut interest rates in less Than two weeks the big question right Now is when you see 142,000 jobs and it Misses expectations how much do you cut Interest rates by and that's the real Question when it comes to the labor Market they've been assessing the health Of the labor market we did see Unemployment tick down to 4.2% so that Was good but we saw major revisions down In the downward direction for both June
And July so that essentially tells us That the labor market the jobs Market is Cooling off it continues to weaken and We've been tracking this as it's been Happening but but it's a situation where The FED does probably need to act now And we know from what uh the Fed chair Jome Powell said a couple of weeks ago And Jackson hle the time has come to Take action the question is will it be a Quarter point or will it be a half point Something a little bit more aggressive Lana yeah we're looking for that Especially since we already know the FED Signal that it's going to cut interest Rates um what what effect do you think Either a lower uh level rate cut or a Higher level rate cut will have on the Labor market and the larger economy Well if you cut rates If the Fed Cuts Rates Say by half a point it's really Signaling that they're taking a more Aggressive stance towards the the Spending economy if you will it would Certainly alleviate uh if you want to Refinance your mortgage for example if You bought a home in the last year or so Or if you'd like to get in on a new car Loan if you're looking at credit card Interest rates things like that a half Point cut would certainly have a more Significant positive impact on personal Budgets but on the other side of things When you're talking about a high yield
Savings account that brings that Interest rate down right and so you'll Earn a little bit less on some of the Money that you may have socked away if You're still trying to save up for a Mortgage or a down payment for example So there's lots of different ways that This can go but overall when you look at The bigger small business uh landscape As well lower interest rates means Companies and owners small business Owners can also invest more easily in Their own businesses and so that would Also be good for the econ economy as Well but overall jobs added continue to Cool off this is a pretty strong report You know by definition of what a jobs Report is but also giving fuel to the FED to cut those interest rates
