

Business Rundown: Jobs Miss Expectations As Tariff Challenges Loom
Sep 5, 2025
Gary Kaltbaum, president of Kaltbaum Capital Management, shares insights on the disappointing August jobs report, revealing just 22,000 jobs created. He discusses how tariffs and economic uncertainty are making employers hesitant to hire. Meanwhile, Jeffrey Schwab, senior counsel at the Liberty Justice Center, delves into ongoing legal challenges against Trump's tariffs, arguing they harm small businesses and questioning their constitutionality. The conversation highlights the broader implications of these policies on the economy.
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Labor Market Is Softening
- The August jobs report showed a marked slowdown with only 22,000 jobs added and unemployment rising to 4.3%.
- Gary Kaltbaum interprets this as a softening trend that may persist despite potential Fed rate cuts.
Bond Market Signals Rate Cut, Not Jobs
- Falling bond yields signal market expectations for Fed easing, not immediate job creation.
- Kaltbaum expects a September rate cut (likely a quarter) but says easing won't instantly spark hiring.
Raise Rates Sooner To Avoid Distortions
- If running the Fed, Kaltbaum would have raised rates earlier to about 3.75% to 3.5% to avoid distortion.
- He advises recognizing central-bank mistakes that created housing and mortgage distortions.