CEA Chair Phelan on Jobs Report, Inflation, Gas Prices

Summary

CEA Chair Chris Phelan discusses the strong August jobs report, administration manufacturing and construction policies, inflation pressures, and efforts to lower beef and gasoline prices. He says crude markets expect prices to decline and personally sees no justification for Fed rate hikes.

• August payrolls beat all Bloomberg economist forecasts, with unemployment falling to 4.1% and weekly earnings up 3.7%.
• Phelan credits full expensing and tariffs for manufacturing and construction investment strength.
• He says average weekly earnings are outstripping inflation.
• The administration is acting to lower beef prices through imports and herd expansion.
• He notes world markets expect crude prices to decline.
• He personally sees no justification for raising rates as core PCE cools.