GEOFF BENNETT: Welcome to the "News Hour."

Fresh government data show# the labor market hit a wall## this summer.

The August jobs report# came in far weaker than expected,## signaling a slowdown that could challenge# the president's economic message.

AMNA NAWAZ: Employers added just 2,2000# new jobs last month.

The only sector that## added significant numbers was health care.

Several# other sectors, including manufacturing, lost jobs.

Revisions also showed that the economy lost 13,000# jobs in June.

That is the first net loss since## December of 2020, during the pandemic.

President# Trump was asked about those weaker numbers.

He## said high interest rates were partly to blame and# predicted unprecedented job growth to come next## year.

He then cast some doubt on the latest data# and said there may be more adjustments to come.

DONALD TRUMP, President of the United States:# The other thing is, so many different -- so many## different elements aren't included yet.

And one of# the things we have learned -- and we learned that## the hard way watching over the last few months --# are the corrections that people have been making.

They will say you're losing# jobs, and then they will say,## by the way, we have a correction a month later.

AMNA NAWAZ: This was the first monthly jobs report# since the president fired the commissioner of the## Bureau of Labor Statistics just hours after# a weak jobs report last month.

Experts said## today they have seen no problems with the agency's# work yet or the acting commissioner overseeing it.

I spoke about all of this earlier# today with Austan Goolsbee,## the president and CEO of the# Federal Reserve Bank of Chicago.

Austan Goolsbee, welcome back to the# "News Hour."

Thanks for joining us.

AUSTAN GOOLSBEE, President, Federal Reserve# Bank of Chicago: Hi.

Thank you for having me.

AMNA NAWAZ: So let's just start with your# reaction to those jobs numbers, 22,000 new## jobs added in August.

What do those numbers say# to you about the labor market and the economy?

AUSTAN GOOLSBEE: Well, they're not# positive numbers.

They're coming## in weaker than was expected and# weaker than what folks would like.

The only thing I will raise and remind folks is,## A, be a little careful overindexing on one# month, and, B, for a variety of reasons,## the monthly payroll jobs number has gotten a# little noisier, let's call it, as an indicator## of where we are in the business cycle.

There are# also some other indicators you want to look at,## like the unemployment rate, the hiring# rate, what's happening with layoffs.

And not all of the labor market# indicators are showing the kind## of weakness that this monthly number# is showing.

So it's a little mixed.

AMNA NAWAZ: And what about that# downward revision looking back to June,## a net loss of 13,000?

What's behind that?

AUSTAN GOOLSBEE: Well, one thing could be behind# it is, we could be seeing a deterioration of the## labor market.

Another thing that could be behind# it that's probably pulling the numbers down is## we have got -- we have had a pretty significant# reduction in net immigration to the United States.

And immigration is usually a pretty# significant contributor to the labor force,## or at least labor force growth.

So we have# been highlighting for months now that this## could happen, that if we started really# squeezing labor force participation or## cracking down on immigration, that you might# start seeing monthly jobs numbers shrinking.

This is probably a little smaller than what# we expected from that.

We tend to think of## it as economists around a break-even.

What# would be the break-even that you would say## the economy's neither overheating or undercooling?# The break-even, if I had to guess, 75,000, 85,000.

So that we're in below that is# making folks a little bit concerned.

AMNA NAWAZ: Well, Chair Powell referenced# some of the immigration restrictions## specifically last month in his remarks,# their impact on the labor market.

And we## know those restrictions are not changing# under this administration any time soon.

Just yesterday, there was a raid on# a Hyundai plant in Georgia in which## more than 400 people were arrested.

Are# those kinds of actions having an impact## on the labor market?

And is this the# beginning of a longer downward slide?

AUSTAN GOOLSBEE: The first thing to note is what# matters is not one specific raid or anything## like that.

It's the total net immigration into# or out of the country.

And we saw last year,## for example, big jobs numbers, 185,000# a month on average for the year.

It ended up being a sign that, looking back,# ah, there was a lot more population growth## than we knew as it was happening.

That's# what we're trying -- everyone is trying## to tease out from the data like the ones that# are coming out today, is, we don't observe,## we don't know what's -- how much the# immigration is pulling down the number.

I'm more comfortable looking at multiple job# market indicators.

The hiring rate is kind of low,## but the layoffs have not really commenced.

If you# thought this was the beginning of a recession,## you would think you would# be seeing a big uptick in## layoffs.

And the job openings/vacancy# rate is actually still quite good.

It's## even better than it was 2019 before the# pandemic, which was a strong labor market.

So, we're just going to have to see# as the months come through here,## is this a sign that the labor market is# deteriorating or is this a sign that some## things are happening behind the scenes that# make the number a little noisier to interpret?

AMNA NAWAZ: While I have you, I have got to# ask quickly about the fact that this is the## first jobs report that we have seen since# President Trump fired the BLS commissioner.

There were a lot of questions about whether# or not the numbers could be trusted,## if there was political pressure.

Do you# have any reason not to trust these numbers?

AUSTAN GOOLSBEE: I have no reason not to# -- there were a lot of no's in there.

I## have no reason not to trust these numbers.# The Bureau of Labor Statistics is absolutely## the best source of data that exists about# the labor market and the U.S. economy.

It's not perfect, and there's definitely noise# in it, and the noise has gotten harder over time## because people don't answer surveys and things# like that.

So I would encourage everybody to look## at as many pieces of information as you can.

As# I say, if you're one of the data dogs, one of the## key rules of the data dog is sniff everything# that hits the floor because it might be food.

AMNA NAWAZ: So, look ahead for us if# you can now.

Do these latest numbers## strengthen the case for interest rate cuts ahead?

AUSTAN GOOLSBEE: As you know, the# law tells the -- gives the Fed a## job when setting monetary policy to# pursue what we call the dual mandate,## to maximize employment and stabilize prices.# You have got to pay attention to inflation.

And we have had some months of really benign# readings and that almost said, no need to pay## attention here.

But in the latest data, we saw# a couple of warning signs, disturbing signs,## like services inflation really kicking back up# again.

That's probably not coming from tariffs.

So we're on the lookout, was that just a blip or# do we got to be thinking about both sides of the## Fed's mandate at the same time?

And that's# always the more uncomfortable circumstance.

AMNA NAWAZ: I'm sure you have been aware of the# president's very public campaign to apply pressure## to the Fed chair, Jerome Powell, as well, and also# his attempts to fire Lisa Cook from the Fed board.

I also want to ask you about the fact that# the president's been very clear about the## fact that he would like to exert more control# over the Fed.

He's used explicit language## saying that we will have a majority soon if# he's able to replace Lisa Cook on that board.

What do you make of that?

Are you worried# about political interference on the Fed?## Are you worried about it# maintaining its independence?

AUSTAN GOOLSBEE: We have through# the Federal Reserve Act a process## that was designed to keep as much as humanly# possible Fed monetary policy decisions away## from -- that there will not be political# interference in determinations like that.

That's not just at the Fed.

All the rich# countries of the world have independent## central banks because economists are basically# unanimous that it's extremely important that## we preserve Central Bank independence# from that kind of political interference.

So I think that's very strong and a very# strong endorsement of independence.

Makes## me uncomfortable anybody who's making the# argument that the monetary policy decisions## should not be based on the economic conditions# and the economic outlook, but should instead## be based on the political viewpoint of one# party or another.

I think it's a mistake.

That's a recipe for inflation coming back.## If you just look around the world at places# where they don't have that independence,## inflation is much higher, growth is# slower, the job market does worse.

AMNA NAWAZ: Austan Goolsbee, president# of the Federal Reserve Bank of Chicago,## always good to speak with you.# Thank you again for making the time.

AUSTAN GOOLSBEE: Lovely to see you again.