“Slowing, but steady. That's the message from the August employment report, confirming other recent activity data that shows a mixed picture for the economy. Nonfarm payroll employment rose by 142,000, rebounding somewhat from July's poorly received report, and only modestly below consensus economic forecasts. Average weekly hours increased to 34.3, reversing July's decline, and the unemployment rate moved down modestly to 4.2%, suggesting a degree of underlying stability that is at odds with fears of an impending recession. The August report should temper calls for more dramatic action from the Federal Reserve - such as a 50 basis point cut in September - which could unnecessarily increase risk to the Fed's inflation mandate given inflation is still running materially higher than the Fed's stated target."
- Dan Katz, Manhattan Institute Adjunct Fellow.
Katz previously served as a senior advisor at the United States Department of the Treasury. He has published widely on economic policy, international affairs, and financial markets in City Journal, The Wall Street Journal, Bloomberg, the Financial Times, Barron’s, National Review, The Hill, and the Center for Strategic and International Studies. For a list of his previous writing at the Manhattan Institute, click here.
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