The latest jobs report shows the labor market is definitely cooling off. The US

added 142,000 new jobs last month and the unemployment rate dipped slightly to 4.2%.

Overall the report was better than July,

but with revisions and other data coming out this week,

it shows a job market that is notably cooler

than this past winter.

All of this is being closely watched as the Fed

prepares to cut rates later this month. Austin Goolsby is the president of

the Federal Reserve Bank of Chicago. Welcome back to the news hour. Thank you so much for having me.

So what's clear from the data is that the job market is slowing down.

What's your overall read of this report and what it says about the strength of the U.S. economy.

The issue that we've been grappling with for a little bit now is the job market is cooling, but

it was started from a level that was probably too hot.

So what we need is to get it stabilized at a steady state full employment kind of a level.

And there's a couple of warning signs here

that as the job markets keep cooling,

and if we get more months that are below what we expected,

like this month, or they revised what

were already disappointing months in the previous two months,

downward, the more we see that the more nervous we would

we might want to be on what's happening in on the state of the economy so how

aggressive should the Fed be when it comes to cutting rates at this meeting that's

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