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<v Speaker 1>Just this morning, the Bureau of Labor Statistics put out

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<v Speaker 1>its jobs report for the month of July, which fell

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<v Speaker 1>well short of expectations.

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<v Speaker 2>Take a look at this.

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<v Speaker 1>Analysts expected in net gain of eighty three thousand jobs.

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<v Speaker 1>What do we get The data shows we lost twenty

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<v Speaker 1>three thousand. The government also revised down the last two

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<v Speaker 1>months of job gains by the way, by one hundred

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<v Speaker 1>three thousand jobs. The President, though, was still selling and

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<v Speaker 1>a plus that's a quote economy, but voters aren't buying it.

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<v Speaker 1>Let's bring in Henriette Tres, co founder of the Veda Partners. Henriette,

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<v Speaker 1>what's your biggest takeaway from the job's numbers that came

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<v Speaker 1>out this morning, again falling Wubbelo expectations.

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<v Speaker 2>Good morning, Britt, Thanks for having me.

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<v Speaker 3>Absolutely the jobs report data is so impactful in this

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<v Speaker 3>particular release that we are now changing our forecast about

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<v Speaker 3>whether or not the Federal Reserve hikes interest rates next

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<v Speaker 3>month and instead decides to hold them flat. That's how

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<v Speaker 3>impactful this job's number is. And importantly, it's not just

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<v Speaker 3>the lost jobs that you need to look at, it's

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<v Speaker 3>where they're coming from. And then also what's happening to wages,

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<v Speaker 3>average hourly earnings are the weakest they have been.

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<v Speaker 2>Since May of twenty twenty one.

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<v Speaker 3>So this is a real indicator of why the American

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<v Speaker 3>public feels so disconnected from the economy, from stock market gains,

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<v Speaker 3>from any a plus. As you mentioned that the President

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<v Speaker 3>might be giving the economy, voters just aren't feeling it,

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<v Speaker 3>and it's because their wages aren't keeping up and jobs

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<v Speaker 3>are being lost.

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<v Speaker 1>And this is all while the inflation ready is sitting

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<v Speaker 1>at three point five percent. So when you have, you know,

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<v Speaker 1>a weaker jobs market and the inflation, what effect is

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<v Speaker 1>that half four Americans at home?

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<v Speaker 2>It's a double waymie.

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<v Speaker 3>In addition, I would go one step further and say

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<v Speaker 3>some of the adjuta that the American public feels, which

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<v Speaker 3>creates this general sense of malaise around the economy, is

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<v Speaker 3>because we're fearful of AI. We don't know what that's

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<v Speaker 3>going to mean for our children, for our own jobs,

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<v Speaker 3>for their prospects into the future. And this was one

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<v Speaker 3>of the first jobs prints that went right after the

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<v Speaker 3>first step, there's sort of the first shoot to drop

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<v Speaker 3>on the AI front. The jobs that were lost were

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<v Speaker 3>disproportionately in a white collar space, financial services, payroll services,

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<v Speaker 3>things that can be easily automated and you can be

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<v Speaker 3>replaced effectively by a computer.

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<v Speaker 2>That's what we saw in this payroll report. And the

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<v Speaker 2>combination of.

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<v Speaker 3>That plus inflation, whether it's from tariffs or the Iran war,

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<v Speaker 3>those are all compounding and it's just a slew of

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<v Speaker 3>bad news for the US consumer.

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<v Speaker 1>So I guess that's sort of confusing to me is

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<v Speaker 1>when you hear the President just this week saying that

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<v Speaker 1>the United States has the greatest economy in the history

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<v Speaker 1>of the world, calling it the Golden Age economy. How

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<v Speaker 1>does this report then fit into that narrative.

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<v Speaker 3>Right, That's exactly why the president's approval rating on his

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<v Speaker 3>handling of the economy, of jobs, of inflation is so

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<v Speaker 3>deeply underwater.

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<v Speaker 2>It's completely disconnected from what the average American is feeling.

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<v Speaker 3>The President is very fond of talking about the stock

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<v Speaker 3>market earnings been incredibly small, strong, the US economy has

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<v Speaker 3>just created a brand new invention.

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<v Speaker 2>In AI that is booming. The US consumer is.

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<v Speaker 3>Also globally very very resilient, as we always have been.

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<v Speaker 3>You know, the adage is don't fight the US consumer

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<v Speaker 3>just like you don't fight the FED. So the disconnect

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<v Speaker 3>that the average American is feeling in terms of seeing

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<v Speaker 3>all this growth in the stock market that's coming from

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<v Speaker 3>the mag seven, from AI adoption, from this generation of

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<v Speaker 3>massive capital expenditures into these huge data centers just doesn't

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<v Speaker 3>translate when you're not earning.

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<v Speaker 2>Enough to keep up with inflation.

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<v Speaker 3>And again, like I said, it's the lowest weakest hourly

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<v Speaker 3>earnings rate that we've seen.

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<v Speaker 2>Since May of twenty twenty one.

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<v Speaker 3>So the American public is looking at their pocketbook and saying,

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<v Speaker 3>I just don't see it.

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<v Speaker 1>It's a big double whammy. As you said. You know,

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<v Speaker 1>when you talk about gas prices, that's another layer that's

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<v Speaker 1>sort of added to this problem. Here, the national average

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<v Speaker 1>for a gallon of gas right now, it's on our

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<v Speaker 1>screens four oh four, ups from two ninety eight since

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<v Speaker 1>the start of the war. Right, So, where do you

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<v Speaker 1>expect gas prices to go from here? Because I don't

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<v Speaker 1>know if we can afford any more than this.

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<v Speaker 3>You know, one of the things that's most important about

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<v Speaker 3>the data set you've got up here in this four

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<v Speaker 3>dollars and four cent gas is that we're just not

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<v Speaker 3>breaking below that three dollars barrier.

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<v Speaker 2>We've been at what three h nine. All through the.

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<v Speaker 3>Last couple of weeks, the war continues to be volatile.

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<v Speaker 3>Maybe we get a ceasefire, maybe we don't. Maybe it

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<v Speaker 3>lasts sixty days, maybe it doesn't. But the gas market

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<v Speaker 3>is tight, the crude market is tight, and so that

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<v Speaker 3>creates a situation where the President can't just snap his

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<v Speaker 3>fingers and get us back to that two dollars ninety

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<v Speaker 3>eight cents figure. There is a very real cost to

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<v Speaker 3>closing the Straight of Hormuz, not just for a couple

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<v Speaker 3>of weeks, but now for.

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<v Speaker 2>Almost six months.

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<v Speaker 3>And to not have a path forward that doesn't include

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<v Speaker 3>iron controlling the straight means that these prices, which are

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<v Speaker 3>set by a global commodity are going to be high

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<v Speaker 3>for the foreseeable future, easily well into the end of

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<v Speaker 3>this year. So for the American consumer to bring it

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<v Speaker 3>back around to what we're all feeling, you might be

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<v Speaker 3>earning less, but you're also paying more, and so you're

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<v Speaker 3>really having a hard time buying what the President is

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<v Speaker 3>selling by saying this is an excellent economy. Everything's more

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<v Speaker 3>expensive and you're earning lesson your wages aren't keeping up

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<v Speaker 3>with job growth if you're keeping your job, so It

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<v Speaker 3>is across the board, very disconcerting and uncomfortable for the

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<v Speaker 3>American consumer who has to get to their job, must

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<v Speaker 3>buy the gasoline to get there.

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<v Speaker 1>Yeah, this affordability issue is much more like a crisis.

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<v Speaker 1>I think we need a triple whammy at this point.

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<v Speaker 1>Harry Henrietta Chance, thank you so much for your time today.