So here we go the US added 142,000 jobs Last month that is slightly below Economist expectations unemployment However fell slightly from 4.3% down to 4.2% these new numbers are expected to Influence the federal reserve's highly Anticipated interest rate Cuts later on This month the Central Bank hasn't cut Rates since the covid-19 pandemic began In 2020 the CBS News business analyst Jill Slinger is joining us now okay so The the number of jobs created wasn't Exactly what analysts had hoped for but Is that a bad thing now first of all These numbers get revised okay so this Is the first estimate we'll have two More after this it's within the distance Of the 160 that was expected I think This is pretty much as expected frankly Uh now the thing that's interesting About this report is that we also got Revisions to the previous two months Yeah and those revisions were revisions Lower the reason why this is important Is it's very cons consistent with labor Markets that are slowing down we wanted That to happen right it always seems Weird right you say wait why would I Want the labor market to slow down well That's part of the fed's plan slow down The labor market wage growth starts to Decelerate we stop making quite as much Money and we stop fueling inflation so That's kind of what the FED really would
Have asked for in any report just make It slow and in fact we have seen job Growth this year slow down 184,000 jobs A month on average and if you go back to Like that crazy postco year of 2021 it Was more than a half a million a month So we needed to take the steam out of That a little bit slow down slowly yes So it seems like by and large most People are expecting to see an interest Rate cut the next time the FED makes That announcement it's really just a Matter of just how steep it's going to Be right is it going to be a quarter of A percentage point is it going to be Half a percentage point I mean based on The decision that the FED makes what can We what does that say about where our Economy is we have gone through an Extraordinarily wacko five years in this Economy and you know a once in a Generation pandemic we'll do that yeah So to be clear when sometimes we look Back to the past as an idea of like what We can expect in the future I don't Think there's really a precedent to what Where we've just gone through that said Fed's going to look at this numbers and They're going to say okay we've got two Big jobs right what job number one is to Make sure the economy grows enough to Create jobs okay we're doing that it's Maybe slower growth in those jobs but Okay number two they call it price
Stability make sure that we don't have Runaway inflation the inflation rate is Coming down so the fed's going to feel Like okay we're good we can start Cutting our interest rate our Benchmark Rate I think the most likely scenario is A quarter of a percentage point at that Meeting on September 18 But you know I was talking to a market Strategist yesterday and he said people Underestimate that if the FED feels like They're not ahead of the game if they Really think they've got to do more they Will don't forget we saw the FED jam up Interest rates when they were behind They could do the same on this side of The cycle so this will be the first of Many interest rate Cuts we're not going Back to zero gang you're not going to Get a 2% mortgage anytime soon but we Are going to slowly get to more normal Interest rates it seems to me like this Particularly group particular group of Decision makers at the at the FED that They are a cautious bunch I mean I guess They're always cautious but it seems Like the slogan is slow and steady in Either direction yeah I mean look Drome Powell is not he's the Fed chair he's Not an economist right he is a lawyer he Is a manager he is a consensus Builder And they all have the same information Some of them come at this from different Angles and I think his angle is hey he's
Not going to he doesn't want to say it Out loud but you know we were late in Starting to increase interest rates and We really didn't want to see inflation Bubble up again and so he just gave a Speech in Jackson Hall Wyoming last Month and he essentially said we're Going to start in September and it's Going to be data dependent but he Shifted something very in interesting We've been talking so much about Inflation for the last few years in that Speech what he said is hey we're going To do whatever we need to do to support The labor market and that was a big Change because they have this dual Mandate jobs inflation right he's saying I think I got the inflation thing Covered if jobs start to deteriorate if We start seeing widespread job losses And by the way last month 24,000 jobs Lost in manufacturing 11,000 jobs lost In retail you know we saw construction Up we saw Healthcare up but you know we We are seeing a little bit on the edges Some sectors starting to peel off jobs He's saying to us Don't sweat it if things get bad we're Going to cut and we'll be more Aggressive if we need to be very Interesting and you know him he's I mean Every syllable is very deliberate he's Always sending a message Jill thank you Very much sure
