Despite November's jobs report falling well below what Wall Street had been expecting, Trump administration officials are defending the resilience of the American economy.
"The underlying details are actually quite good," Joe LaVorgna, Chief Economist for the White House National Economic Council, told Cheddar a few hours after the report's release.
"This recovery is not faltering. It's certainly not faltering on fundamentals," he also said.
The report released Friday showed that just 245,000 jobs were added in November, which is lower than the last pre-pandemic jobs report that showed 273,000 jobs added in February.
However, LaVorgna pointed out the unemployment rate dropped from 6.9 percent in October down to 6.7.
"We all look at the unemployment rate, including [Wall Street]," LaVorgna said. "Estimates back in the summer were that rates would go up to near 20 percent. We're down 54 percent on the unemployment rate since where we were back in April."
While the White House is correct in calling out wildly missed forecasts by Wall Street economists, roughly 5.5 million Americans are still filing for continuing unemployment benefits. LaVorgna says the White House and Republicans are interested in providing more assistance, but he thinks the economy isn't as dire as many people make it out to be.
"We'd like to get people assistance. We're not resting on our laurels," LaVorgna said. "However, as we've argued all along, this economy is much stronger than people think."
A recent $908 billion bipartisan proposal has gained momentum with Democrats in Congress, but Republican Senate Majority Leader Mitch McConnell appears to be focused on a smaller Republican proposal. Still, McConnell says he's confident that the two sides can reach a deal soon.
LaVorgna says that the White House and Republicans may have given up too much when the CARES Act was hurriedly passed in April, and implied that additional stimulus isn't entirely necessary.
"We believe we went more than halfway with our colleagues on the other side of the aisle," LaVorgna said. "Negotiations are still going on. We'll see what comes of it."
In a statement Friday, President-elect Joe Biden expressed deep concern about the jobs numbers and the need to get a stimulus deal done before December 31, when CARES Act money runs out.
"This is a grim jobs report. It shows an economy that is stalling," Biden's statement read. "Congress and President Trump must get a deal done for the American people."
LaVorgna says 'Trumpian' economic policies are why America's recovery surprised so many experts on Wall Street.
"To me, there's been way too much pessimism out there," LaVorgna said.
I'm an optimist. I think there's been good reason for me to be optimistic."
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
