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Fed Chair Under Fire: Economists Blame High Interest Rates for ‘Weak’ Jobs Report

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Economists are blaming Federal Reserve Chairman Jerome Powell after the July jobs report saw unemployment jump up to 4.3%, from 4.1% in June. The Fed has been praised for the “soft landing” it engineered by raising interest rates and keeping them high, avoiding a recession and performing better overall than any of the G7 countries in the wake of the COVID pandemic, but multiple economists, and economics experts and journalists who write about the economy collectively are saying, the Fed “should have cut.”

Some are adding that the political portion of that equation means that next month when the Fed most likely does cut rates, Donald Trump and his camp will accuse the move of being a political, not economic one. That caution came from, among others, CNBC’s Andrew Ross Sorkin Friday morning after the report dropped.

“Andrew makes the best point ever,” remarked MSNBC’s Stephanie Ruhle on-air while speaking with Sorkin. “Donald Trump and his allies are going to go absolutely – and I speak technical here – ‘binonkers’ when and if the Fed acts, and they most likely will, and he’s going to wring his hands and say it’s ‘politics, politics, politics.'”

READ MORE: Biden’s Historic Prisoner Swap an Indication Putin Betting Trump Will Lose: Pundits

Fox News immediately jumped on the unemployment rate increase, predicting likely recession and painting a dire picture. Former Senior Advisor for Communications to the National Economic Council, .Jesse Lee, added some facts to Fox News’ reporting – showing jobs numbers in recent years, 2018 and 2019, were far lower.

The Washington Post’s Heather Long sums up the report: “A really weak July jobs report. The US economy added only 114,000 jobs in July (well below forecasts) Unemployment rate hits 4.3% —> Highest since October 2021 and this triggers the Sahm Rule recession indicator. Wage growth: 3.6% (vs. 3% inflation).”

READ MORE: A Reporter Read Donald Trump’s Words Back to Him. Now Hugh Hewitt is Furious.

(While several economists have also mentioned the “Sahm Rule,” that does not mean the U.S. is in a recession, nor that one is inevitable, as CNN reports.)

“The clear message in today’s soft jobs report is the Federal Reserve needs to cut interest rates,” says Mark Zandi, chief economist at Moody’s Analytics. “They should have begun cutting rates months ago. Job growth is decidedly throttling back, unemployment is rising quickly, hours worked per week are low and falling, and temporary help jobs continue to evaporate. Wage growth and inflation are back to the Fed’s target. The question isn’t whether the Fed should cut in September, but by how much.”

Veteran journalist John Harwood, formerly of CNBC, CNN, and The Wall Street Journal, cited Mark Zandi and said, “once again [he] was right as he has been consistently in recent years.”

“Fed should have cut this week behind the curve,” he added, also noting New York Times economist Paul Krugman “was also right.”

Professor of economics and international affairs Tara Sinclair also wrote: “The Fed should have cut this week.”

And Michael Linden, a Senior Policy Fellow at the Washington Center for Equitable Growth, also wrote: “Fed should have cut.”

Watch the video above or at this link.

READ MORE: ‘Self-Immolating’ Trump Should Drop Out After ‘Disastrous’ Interview: Critics

 

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‘Smash-and-Grab’: Trump Torched for ‘Corrupt’ $230 Million Payout Push

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President Donald Trump is under fire after a New York Times bombshell revealed he wants $230 million from the Justice Department over two investigations targeting him during his campaign.

The Times explained that there is “no parallel in American history, as Mr. Trump, a presidential candidate, was pursued by federal law enforcement and eventually won the election, taking over the very government that must now review his claims.” The paper of record also called it “the starkest example yet of potential ethical conflicts created by installing the president’s former lawyers atop the Justice Department.”

Critics are blasting the president.

“It’s hard to think of an action more purely corrupt than a …. president ordering the executive branch to pay him hundreds of millions of dollars,” wrote David French, a New York Times opinion columnist. “I cannot wait to read the MAGA defenses of this (and there will be many). They’ll display Soviet levels of sycophancy.”

READ MORE: Not a ‘Gut-Wrenching’ Problem: Ron Johnson Shrugs Off Millions Losing Subsidies

Attorney Andrew Weinstein, a former Obama and Biden appointee, noted that “$230 million could feed every homeless veteran in America for more than 3 years.”

Jesse Lee, a former Obama and Biden official, remarked, “What a g– crook.”

Marlow Stern, who teaches at the Columbia Journalism School and is a former Rolling Stone senior editor, asked, “now he’s extorting… the u.s. justice department?”

Mother Jones reporter Dan Friedman quoted the Trump White House Press Secretary: “’I think it’s frankly ridiculous that anyone in this room would even suggest that President Trump is doing anything for his own benefit,’ Karoline Leavitt said in May. ‘He left a life of luxury and a life of running a very successful real estate empire for public service.'”

Political historian Brian Rosenwald commented, “Like come the f– on, this is the most blatant corruption in American history. He’s just stealing from us the taxpayers.”

Derek Martin, founder and president of Pathfinder Research, wrote: “Trump is demanding taxpayers write him a check for $230 million while Republicans tell us they can’t afford to help ordinary Americans pay for health insurance. Cartoonishly evil.”

Jeff Hauser, who writes the Revolving Door Project on Substack, observed: “The dude is desecrating the White House and extorting the Treasury during a shutdown [after] several million Americans protested him. It’s kind of now or never for an opposition party to be provocative in attacking corruption. Trump is too busy enriching himself to govern.”

Media Matters’ Matthew Gertz wrote: “The president of the United States is attempting a smash-and-grab on the U.S. Treasury, and the people with the ability to say no are his former personal lawyers, this is insane.”

READ MORE: ‘Sick’: Jeffries Torches Trump’s ‘Out of Control’ Press Secretary

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‘Travesty’: Trump Reportedly Seeking ‘Bizarre’ $230 Million Payout From DOJ

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President Donald Trump reportedly appears to be demanding the U.S. Department of Justice pay him $230 million in compensation after multiple investigations during his presidential campaign.

“The situation has no parallel in American history, as Mr. Trump, a presidential candidate, was pursued by federal law enforcement and eventually won the election, taking over the very government that must now review his claims,” The New York Times, citing people familiar with the matter, reported.

Noting that President Trump has installed his former personal lawyers at the top of the DOJ, the Times called it “the starkest example yet of potential ethical conflicts.”

Trump, according to the Times, in 2023, submitted a claim that “seeks damages for a number of purported violations of his rights, including the F.B.I. and special counsel investigation into Russian election tampering and possible connections to the 2016 Trump campaign, according to people familiar with the matter.”

READ MORE: Not a ‘Gut-Wrenching’ Problem: Ron Johnson Shrugs Off Millions Losing Subsidies

Another complaint, filed the following year, “accuses the F.B.I. of violating Mr. Trump’s privacy by searching Mar-a-Lago, his club and residence in Florida, in 2022 for classified documents.”

Bennett L. Gershman, an ethics professor at Pace University, told the Times it was “a travesty.”

“The ethical conflict is just so basic and fundamental, you don’t need a law professor to explain it,” Gershmann said. “And then to have people in the Justice Department decide whether his claim should be successful or not, and these are the people who serve him deciding whether he wins or loses. It’s bizarre and almost too outlandish to believe.”

READ MORE: ‘Sick’: Jeffries Torches Trump’s ‘Out of Control’ Press Secretary

 

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How Megachurches Use the Bible to Defend and Promote Wealth Inequality: Report

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Does religion drive Americans to support or oppose economic inequality? That’s a question explored by a Ph.D. candidate at The Ohio State University who recently examined ten years of a megachurch’s sermons in a published paper: “‘I Thank God We’re Rich’: Justifying Economic Inequality in an Evangelical Congregation.”

“To investigate how evangelical leaders confront the conflict between inequality and egalitarian passages of the Bible, I conducted a sermon analysis study of New River, a Midwestern suburban megachurch,” wrote Dawson P. R. Vosburg.

“New River’s approach to inequality was one of clear justification of the status quo, centered on the justification of wealth accumulation and the minimization of inequality’s moral importance,” Vosburg added.

The church’s pastors, he found, “justified economic inequality in several ways: proclaiming that God did not condemn ownership of vast wealth; minimizing domestic inequality in comparison to global inequality; selectively spiritualizing economic passages of the Bible; and saying that God owns everything and thus the status quo distribution is justified.”

READ MORE: Not a ‘Gut-Wrenching’ Problem: Ron Johnson Shrugs Off Millions Losing Subsidies

Hemant Mehta of The Friendly Atheist examined the paper. He writes that Vosburg found sermons “that discussed anything financial—by searching for terms like ‘rich,’ ‘tithe,’ ‘debt,’ ‘billionaire,’ etc.—and analyzed the results to see how this typical white evangelical megachurch minimized the wealth gap.” He also noted that Vosburg anonymized the name of the church.

Mehta looked at the four ways New River downplayed wealth inequality:

“They condemned ‘rich shaming’ anyone”
The pastor, Mehta found, “delivered an anecdote about a rich couple that left another church and came to his because they felt personally attacked when their previous pastor condemned wealth from the pulpit. (At their new home, of course, their tithes would go into New River’s coffers.)”

“They downplayed U.S. inequality by focusing on global inequality”
Essentially, pastors told congregants that compared to the world’s poor, they were doing quite well.

“They re-interpreted Bible verses about poverty—even the direct ones”
When it comes to preaching about the poor, Mehta wrote, the pastor was “not talking about financially poor people, he’s talking about spiritually impoverished people.”

READ MORE: ‘Sick’: Jeffries Torches Trump’s ‘Out of Control’ Press Secretary

Vosburg told Mehta that pastors stressed tithing “over 150 times across 16 separate sermons.”

“They said God owns everything, anyway”
Ultimately, Mehta explained, the pastor’s point was to not be mad “at people with private jets and yachts and multiple summer homes.”

“The takeaway from all this,” Mehta wrote, “is that conservative policies that benefit the ultra-wealthy at the expense of everyone else in society are going to be supported by congregations like this one that are being brainwashed into thinking God loves the rich and the poor deserve their lot in life.”

Mehta also blasted the New River pastor.

“Pastors like this one hollow out Christ’s teachings until all that’s left is a gilded throne for the wealthy. In their hands, Scripture is a weapon to shame the poor, a shield to protect billionaires, and a drug to keep their congregations quiet while the cancer of inequality grows around them.”

READ MORE: ‘Existential Threat’: U.S. on Path to Authoritarianism Warn Ex-Intelligence Officials

 

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