John Carney - Finance & Economics Editor, Breitbart News Joins Houston's Morning News

Episode Transcript

Speaker 1 (00:00):
Well, Fed's not going away anytime soon. But the FED
has been a problem, that's for sure. Six twenty three.
Here in Houston's Morning News, we're joined by John Carney,
Finance and Economics editor at bright Bart News. I want
to get your take first on this news. We found
out that the surprise, surprise, evidently they've gone back and
looked at the amount of jobs were created under the

(00:21):
Biden administration. And guess what, there's nine hundred and eleven
thousand fewer jobs than were claiming we're created under Biden.

Speaker 2 (00:30):
That's right. Look, they do a version of this every
year where they collect all the initial data that they
need to produce what we see as the monthly Jobs report,
and then they try to compare it with data that
we have from other sources, the Census, and reconcile it.

(00:51):
And but what's different about this year's is that, first
of all, it's a second year in a row of
an enormous revision. Now just well, we got we were
wrong by a little bit. This actually eliminated more than
half of the jobs we thought were created from the
end of March of twenty twenty four to the beginning

(01:12):
of March twenty five. So it's almost entirely Biden's last
year as president, and it pays a very different picture
of the labor market. Instead of what looked like a
relatively strong labor market, what we get is a pretty
weak one where we're not even creating enough jobs every
month to keep up with the growth of the population.

Speaker 1 (01:34):
And of course we've got a Federal Reserve that is
basing its policy on data in the data's flawed.

Speaker 2 (01:41):
That's right. This is a very big problem. Federal Reserve
has to look at the even if you were running
say a six month basis, so you're taking in the
monthly or visions that come out, those come out only
for two months. And if the FET is basing its
policy off of seriously flawed data, you're going to have

(02:02):
seriously federal Reserve policy. And that's what it looks like
right now. Interest rates are much higher than they would
have been had the Fed had more accurate data over
the past year.

Speaker 1 (02:12):
Well, what we know from the FAN at this point
seems that they're probably poised for an interest rate cut
in September. First of all, do you agree there needs
to be an interest rate cut? And if you were
the FED chairman, how much would you be cutting rates
in September?

Speaker 2 (02:28):
Well, yes, there does need to be an interest rate cut.
There needed to be an interest rate cut several months ago.
The Fed has waited way too long. I think they
need to play catch up. They really need the interest
rates need to be probably a point to a point
and a half lower than they are right now. Well,
that would mean I would start if I were the

(02:49):
Federal Reserve chairman. First of all, if I were Jerampell,
I would resign in humiliation because he's been so wrong
for so long. But I think that they should cut
by at least half a point at September and then
announced that they're going to also cut in October and December.
So bringing down interest rates fairly rapidly and not doing

(03:10):
anything like just cutting in September and waiting to see
what happens. That's too slow. And what this revision data
and the latest couple months of job data tell us
is that the labor market really has been ground to
a crawl, if not a complete halt, by the weight
of interest rates that are inappropriately high.

Speaker 1 (03:32):
I completely agree with you. They need to be aggressive
with the cuts. John Carney, Thank you, Finance and Economics Editor,
at bright Bart News. That's John Carney.