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Federal Reserve Governor Lisa Cook is worried about how jobs are growing in the United States right now. She said the latest jobs report, which came out last Friday, shows that hiring is starting to slow down. For her, this is a serious concern and something the Federal Reserve needs to keep a close eye on.
She shared her thoughts during a talk on Wednesday at an event hosted by the Federal Reserve Bank of Boston. In her speech, she called the report “concerning” and explained that the slowdown in hiring shows a drop in momentum. In simple terms, it means the job market isn’t growing as fast as it used to.
Cook also said that it’s common to see big changes in job data when the economy is going through a shift. These changes are known as “revisions,” which basically means the original job numbers get updated later when more information becomes available. The July report had some of these revisions. Cook explained that this usually happens when the economy is at a turning point, either starting to slow down or speed up. So while the changes in numbers might not be a total surprise, they still raise questions about where the economy is headed next.
This is important because the Federal Reserve looks at job reports to help decide what to do with interest rates. If the job market is strong, they might raise rates to prevent the economy from overheating. But if hiring is slowing down and the economy seems weaker, they might decide to lower rates or keep them steady to avoid hurting job growth even more.
Cook’s comments make it clear that the Federal Reserve is watching the job market closely. They want to make sure the economy stays balanced. If people aren’t getting hired as quickly as before, it could be a sign that businesses are unsure about the future or that other parts of the economy are starting to slow down.
Right now, the Fed is trying to figure out its next move. Cook’s warning shows that they are paying attention to the signals coming from the labor market and may adjust their policies if the slowdown continues.
In short, fewer new jobs are being added, and that could mean trouble ahead. Lisa Cook and other officials at the Federal Reserve are keeping a close watch to make sure the economy doesn’t slip into something worse.