While a weaker labor market suggests potential cracks in the U.S. economy, it also could keep the Federal Reserve from hiking interest rates in September.

Bank of America warns that uncertainty around the Federal Reserve’s strategy could raise borrowing costs and create fresh risks for the U.S. economy

U.S. economic growth slowed amid a widening in the trade deficit, but consumer spending and business investment pointed to underlying strength.

Employers shed 23,000 jobs in July, and gains in previous months were revised down sharply, in a downbeat report that suggests the labor market is weaker than previously believed.

The US economy is continuing to grow faster and generate more new jobs than Europe. Annual national income growth over the past five years has averaged 3.3% in the US against 2.6% in the EU. In the first quarter of 2026,

Episode 306 of the Investopedia Express with Caleb Silver (August 3, 2026)

The U.S. economy expanded at a sluggish 1.5% pace from April through June as rising imports weighed on growth, yet consumers continued to spend. The Federal Reserve’s favored measure of inflation grew more slowly last month,

Investing at all-time highs seems like a bad move, but the data suggests the timing isn’t everything.