Episode 51: Are interest rate cuts on the horizon?
- The August jobs report showed significant weakness, with only 22,000 new positions added to payrolls.
- The unemployment rate rose to 4.3% in August. Average hourly earnings increased 0.3% monthly and 3.7% annually.
- Construction spending in July was $2.14 trillion, in line with June but down 2.8% year-over-year. Residential construction declined, while public construction helped stabilize overall spending.
- S&P Case-Shiller indices showed slowing home price growth.
- Pending home sales fell 0.4% in July but remained 0.7% higher than a year ago.
- Mortgage applications dropped 1.2% in late August.
- GDP growth in 2nd quarter was revised upward to 3.3%, driven by AI-related business investment and steady consumer spending.
- Consumer confidence declined to 97.4 in August, down from 98.7 in July.
- Federal Reserve Chair Powell suggested an interest rate cut could be on the horizon.
For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.
