WASHINGTON (NEXSTAR) — According to new federal data, the U.S. gained a modest 142,000 jobs in August, leaving many economists confident an interest rate cut is coming soon.
It marks the third straight month of lower than expected gains.
“There is absolutely a cooling going on in the job market,” Bankrate Senior Economic Analyst Mark Hamrick said.
Hamrick predicts the cool down could mean a more drastic interest rate cut at the Federal Reserve’s meeting this month.
The White House is staying out of the Federal Reserve’s decision making, but lead White House Economist Jared Bernstein said a rate cut could be good news for middle-income families.
“When the Federal Reserve cuts interest rates, we tend to see the 30-year fixed rate mortgage rate come down,” Bernstein said.
Former President Donald Trump said the jobs numbers are only bad news. Leaving court in New York on Friday, Trump blamed the Biden-Harris administration’s border policies for meager job gains.
“Foreigners coming in illegally took the jobs of native-born Americans,” Trump said.
The bulk of new jobs in August were in construction, health care and social assistance. Manufacturing, on the other hand, saw job losses.
“I would say right now we’re on a bit of a tight rope with respect to the economy and for now, the pressure’s on to keep this economy from sort of developing more negative momentum,” Hamrick said.
The Federal Reserve is expected to announce its next move Sept. 18.