Top Business News Summaries … August 10, 2025
1) Is It Time To Worry About Stagflation?
https://qz.com/stagflation-recession-us-economy-warning-signs
Prices are rising while growth slows, and some big economists warn the US could be sliding toward stagflation. Recent data show inflation remains stubborn, GDP growth is cooling, and the job market is softening — July payrolls were much weaker than expected. New tariffs and stricter immigration enforcement are raising costs and shrinking the pool of workers. Businesses are cutting investment plans because policy uncertainty makes long-term choices risky. The Federal Reserve faces a hard trade-off: raising rates could deepen a slowdown, while cutting them could spur higher prices. For now, policymakers are watching closely and weighing risky choices. https://amzn.to/3UTqqFr
2) Clear-Cut Reasons For Last Month’s Disastrous Jobs Report
Last month’s weak jobs report had clear, overlapping causes that explain the surprise. It began with big downward revisions to prior months, which cut the headline number. Employers hired far fewer people than surveys expected, especially in factories and services that take big hits from higher costs. Some firms froze recruiting while they waited to see where tariffs and policy were headed. Seasonal adjustments and temporary census or project work also swung the figures. That left hiring concentrated in health care and public jobs, masking weakness elsewhere. In short: weaker demand, sticky costs, policy uncertainty, and odd seasonal moves combined to produce the bad number, and raised questions for policy makers. https://amzn.to/3UTqqFr
3) Trump Warns Of Another Great Depression If Court Strikes Down Tariffs
https://edition.cnn.com/2025/08/08/business/tariffs-trump-great-depression
President Trump warned that if courts strike down his tariff program, the result could be a deep economic crisis like the Great Depression. The administration uses wide authority to levy big tariffs that raise import prices and bring in substantial revenue. A court ruling against the policy could force refunds, disrupt planning, and unsettle markets. Supporters say tariffs protect jobs and industries; critics say they raise costs for households and businesses. Economists disagree about the scale of harm, with some seeing short-term disruptions and others fearing longer damage to trade and investment. Legal outcomes will shape the policy’s future and could influence the election cycle. https://amzn.to/3UTqqFr
4) Musalem Says Fed Is Missing More On Inflation Side Of Mandate
Alberto Musalem, president of the St. Louis Fed, said officials are missing the inflation part of their job more than the jobs part. He said the labor market looks close to full employment, but prices are still too high compared with the Fed’s 2% goal. Musalem argued that while jobs are holding up, inflation remains stubborn and needs attention. The Fed recently left rates unchanged, but officials face pressure to weigh whether more action is needed to bring prices down. Investors and policymakers will watch data like consumer prices and wages to judge the next moves. Musalem’s comments add to a debate over priorities at the central bank and rate timing. https://amzn.to/3UTqqFr
5) Wall Street Is Divided Over Whether Immigration Is Behind US Hiring Slowdown
https://fortune.com/2025/08/09/immigration-crackdown-us-hiring-slowdown-labor-supply-vs-demand/
Wall Street is split about why U.S. hiring has slowed so sharply, and the answer matters for policy. One view says tougher immigration enforcement has cut the supply of workers, leaving firms unable to fill openings even when they want to hire. That would mean the slowdown is a supply problem and might not require big interest-rate cuts. Another view says hiring has slowed because employers are pulling back demand — fewer open roles and hiring freezes. If demand is weak, the Fed may need to cut rates to spur growth. The disagreement reflects different readings of data, and each viewpoint to different policy steps. Shaping jobs and inflation policy. https://amzn.to/3UTqqFr
6) Canada Unexpectedly Sheds 40,800 Jobs, Most Since Pandemic
Canada lost 40,800 jobs in July, the biggest drop since the pandemic and larger than economists expected. The jobless rate held near 6.9 percent, while youth unemployment rose sharply and full-time work fell more than part-time. Losses hit multiple sectors including information and culture, construction, and business services, while transportation and warehousing added jobs. The decline erased much of June’s gains and surprised policymakers and markets. Analysts pointed to trade frictions, higher costs, and weaker demand as factors that weighed on hiring, especially in manufacturing. The sudden drop raises questions about near-term growth and whether policymakers must change course to support jobs. Households and businesses will watch data closely. https://amzn.to/3UTqqFr
7) Trump Says ‘Getting Very Close’ On Extending China Trade Truce
President Trump said he is getting very close to an agreement with China to extend their trade truce, a step that would pause new tariff fights and ease some export limits. He suggested a deal could include rolling back or delaying some tariffs and might open the door for talks with China’s leaders. Extending the truce would reduce uncertainty for businesses that face sudden cost increases and shifting supply routes. Markets welcomed the possibility, but details remain thin, and any pact would need careful drafting to avoid quick breakdowns. A real agreement could ease trade tensions, help global supply chains, and affect investment and manufacturing decisions worldwide, but material risks remain. https://amzn.to/3UTqqFr
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#Stagflation #Inflation #JobsReport #Unemployment #Tariffs #FedPolicy #HiringSlowdown #Immigration #TradeTruce
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