Audioburst Search
|
10 months ago

Coming up next

President Trump, Scott Horsely, United States discussed on All Things Considered

All Things Considered
|
10 months ago

President, Cleveland Federal Reserve And Lester discussed on The KDKA Radio Morning News with Larry Richert and John Shumway

The KDKA Radio Morning News with Larry Richert and John Shumway
|
2 d ago
KCRW

Automatic TRANSCRIPT

I'm Mary Louise Kelley. And I'm Ari Shapiro. What has been a white hot job market in the United States now shows signs of cooling off. According to the Labor Department employ. Lawyers added just seventy five thousand jobs last month. That's well below expectations wage growth, also dipped a bit even though the unemployment rate held steady at a low three point six percent. Weak jobs report is another sign of a slowdown in the US economy. But you wouldn't know that to look at the stock market, which boomed again, today, here to help us sort this out as NPR's, Scott Horsely. Hey, Scott before we get to the stock market, how big a warning sign for the economy is, this new jobs report is definitely a yellow caution flag, especially because the slowdown in hiring is consistent with some of the other indicators. We've been watching, including index of manufacturing activity. We always say, don't make too much out of any one month job number but job gains for March and April were also revised down by a total of seventy five thousand so now the average job growth over the last three months is running about one hundred fifty thousand jobs for month. Diane Swonk who's chief economist at grant Thornton says that's a pretty big downshift from what we were saying last year jobs growth. Has slowed considerably from twenty eighteen to twenty nineteen some of that was expected, some of it is, also due to weakness tied to tariffs and the global trade tensions were facing. And those trade tensions are, you're only going to get worse. It was in may that the president ordered higher tariffs on some two hundred billion dollars worth of goods. The US buys from China now, President Trump's rented add tariffs on everything. We buy from Mexico. If Trump follows through with that, it would more than double the volume of imports subject to the president's tax, the White House, often talks about how strong the economy is, how are they spending this disappointing report as you might expect? They are trying to put the best face on it. Kevin Hassett who is about to step down as White House, a communist knows that midwestern, flooding may have had something to do with the jobs numbers, and it certainly may have dampened the total. Although it wouldn't explain the full slowdown has it also argues that whatever short term pain. The trade war might be causing there could be a payoff in the long run. I think going forward, there's still a big upside potential for a trade deal with China. And you know, we're all in helping prepare the president in the team for whatever hope to be positive talks at the g twenty meeting Trump is to meet with his Chinese counterpart on the sidelines. G twenty later this month. You're right. Strong economy has been one of the president's central bragging point. So a slowdown could be politically costly for now, though, has it at least a sticking his projection of three percent, economic growth this year did this report show weakness in some sectors, more than others. We tend to think of manufacturing is especially vulnerable to the trade war, but really, there was weakness across the board, retail shed, another seventy six hundred jobs service sector jobs, overall were about half what they were the month before all of that is a worrisome sign that the slowdown on the factory floor might be bleeding over to the rest of the US economy. Okay. So the thing I really want you to explain with all this disappointing news wise the stock market going up. This is one of those perverse times when bad news on main street is good news. On Wall Street in. Investors are betting that the Federal Reserve will respond to this economic slowdown by cutting interest rates, and that it will do so sooner rather than later, economists, walk does think if the fed cuts rate, it will have plenty of justification. This is not the fed capitulating financial markets or capitulating to a president. It is them reacting to an economy that is now weakening, some of it self inflicted. But nonetheless, they have to deal with. It fed chairman Joe J Paul did say this week that the fed is prepared to do what's necessary to extend the decade old economic expansion and the Fed's interest rate setting committee is scheduled to me Ari in less than two weeks. NPR's Scott Horsely on the new monthly jobs report. Thank scott. You're welcome. Raider does time to talk in politics. And we are joined this week by Margaret Hoover of PBS's, firing line and EJ dean of the Washington Post and the Brookings Institution. Welcome you too. Great to be with you. I Margaret you with us. Thank you for having good to have you with us. All right. We're going to loop back to Scott's report on economy in a second, but we're going to start the week back where it began with President Trump's European tour landing in London winding his way you're Dublin, and then onto the beaches of Normandy yesterday to commemorate, the seventy fifth anniversary of d day..