CEA Chair Phelan on Jobs Report, Inflation, Gas Prices

• August payrolls report was a 'blowout' with +162,000 jobs, exceeding all economist estimates.
• Administration policies (e.g., full expensing of capital expenditures, tariffs) are driving a manufacturing and non-residential construction boom.
• Average weekly earnings are up 3.7% and are 'outstripping inflation'.
• Core PCE (annualized over last three months) is at 3%, down from 3.9%, and world markets expect crude prices to decrease.
• Phelan personally does not see justification for the Fed to raise interest rates at this point.

White House Council of Economic Advisors Chair Chris Phelan presents a bullish view of the US economy, highlighting a 'blowout' August jobs report and strong labor market. He attributes manufacturing growth to administration policies and states that average weekly earnings are outstripping inflation. Phelan personally sees no justification for further interest rate hikes by the Fed, despite acknowledging inflation concerns.