>> Eric: IN THE NEXT HOUR, WE'LL COVER A WIDE RANGE OF POLITICS FROM THE NATION'S CAPITOL TO THE STATE CAPITOL TO CITY HALL HERE IN ST. PAUL.

IN BETWEEN, WE'LL VISIT WITH THE RETIRING MET COUNCIL CHAIR, TALK VIKINGS OPENER ON MONDAY NIGHT FOOTBALL, AND MARY LAHAMMER HAS POLITICAL AND COMMUNITY REACTION TO LAST WEEK'S MASS SCHOOL SHOOTING.

>> Kaomi: INDEED.

BUT WE START TONIGHT WITH ECONOMIC NEWS.

PRESIDENT TRUMP'S QUEST TO CONTROL THE FEDERAL RESERVE BANK CONTINUED THIS WEEK.

TRUMP'S USE OF EMERGENCY POWERS TO IMPLEMENT TARIFFS MAY BE HEADED TO THE SUPREME COURT.

AND JOBS NUMBERS OUT FRIDAY MORNING SHOW A STALLED LABOR MARKET WITH THE FIRST LOSS OF JOBS SINCE THE PANDEMIC.

CHRIS FARRELL IS BACK.

HE COVERS ECONOMIC NEWS FOR AMERICAN PUBLIC MEDIA.

THE JOBS REPORT WAS KIND OF WEAK.

>> THE JOBS REPORT WAS VERY WEAK AND WHAT REALLY GRABBED EVERYBODY'S ATTENTION, IT WAS A GAIN OF 22,000.

AND THE EXPECTATION WAS AROUND 75,000.

SO STILL NOT A GREAT NUMBER.

BUT THE REVISED -- HE PREVIOUS MONTH DOWN, TO A NEGATIVE 13,000.

AND THE UNEMPLOYMENT RATE WENT UP TO 4.3%.

I MEAN, NOT A BIG CHANGE, BUT IT WENT UP.

AND SO COUPLE IMPLICATIONS OF THAT.

ONE IS, OKAY, THE FED IS GOING TO CUT ITS BENCHMARK INTEREST RATE WHEN IT MEETS SEPTEMBER 16TH AND 17TH.

SO THAT WAS THE IMMEDIATE REACTION THAT CAME HROUGH THE MARKET WHICH IS WHY THE STOCK MARKET WENT SO HIGH.

SO THAT WAS A BIG IMPLICATION.

SO THE ECONOMY IS WEAK.

YOU CAN'T SAY RECESSION.

IT'S ONE MONTH, TWO MONTHS OF DATA.

BUT DEFINITELY THE ECONOMY IS WEAKENING.

THE LABOR MARKET HAS A LOT OF CRACKS IN IT AND PEOPLE ARE RIGHTLY GETTING NERVOUS.

>> Cathy: YOU MENTIONED CRACKS IN THE LABOR MARKET.

WHERE ARE THEY?

>> SO ONE OF THEM S MANUFACTURING.

AND YOU HAD MENTIONED TARIFFS AND A LOT F THIS TARIFFS IS TO BRING BACK MANUFACTURING.

A DECOMBINE OF 12,000 IN MANUFACTURING.

THE GAINS YOU'VE BEEN SEEING RECENTLY ARE IN HEALTHCARE AND SOCIAL ASSISTANCE AND SOCIAL SERVICES AND THE HEALTHCARE IS SLOWING DOWN.

THAT WAS WHAT PEOPLE WERE TAKING AWAY FROM THAT.

THE OTHER THIN IS WAGE GAINS ARE ALSO SLOWING DOWN.

SO, YOU KNOW, CONSTRUCTION IS DOWN.

AND I THINK IF YOU JUST SORT OF, YOU KNOW, WHAT'S GOING ON HERE?

WHAT IS HAPPENING?

YOU HAVE TO SAY, IT'S ALL THE UNCERTAINTY AROUND TARIFFS.

BECAUSE IF YOU'RE A COMPANY AND YOU'RE THINKING ABOUT EXPANDING -- >> Eric: SMALL BUSINESS IN PARTICULAR.

>> YOU'RE JUST HESITATING.

YOU'RE JUST NOT OUT THERE IN THE MARKET.

AND THEN YOU HAVE THIS EFFECT OF THE DEPORTATIONS AND PEOPLE NOT NECESSARILY LEAVING THE COUNTRY BUT THEY'RE NOT GOING TO WORK ANYMORE.

PEOPLE ARE NOT COMING IN.

AND SO THE COMBINATION OF THOSE TWO IS WHAT IS BEHIND THE WEAKER LABOR MARKET.

>> Eric: NEXT WEEK WE GET THE CONSUMER PRICE INDEX.

IT'S A CONSUMER-DRIVEN ECONOMY, I THINK IT'S FAIR TO SAY.

WHAT WILL THAT TELL US.

>> SO WHAT THE NUMBERS HAVE BEEN, NOT DRAMATIC.

INFLATION HAS KIND OF BOTTOMED OUT AND IT'S BEEN GOING UP A LITTLE BIT.

AND SO THE EXPECTATION IS WHEN WE GET THAT CONSUMER PRICE INDEX NUMBER, THAT'S WHAT IT'S GOING TO REINFORCE, THIS MESSAGE, WHICH IS WHY THE FED IS IN A VERY DIFFICULT POSITION.

THE MESSAGE THAT WE'RE GETTING ON INFLATION WHICH IS WHAT YOU EXPECTED WITH TARIFFS AS THEY FILTER THROUGH THE SYSTEM IS THAT INFLATION IS STUBBORN RIGHT NOW.

IT'S NOT GOING THE DIRECTION WE WANT IT TO GO.

IT'S NOT OUT OF CONTROL BUT AT THE SAME TIME WE'RE GETTING A REAL SIGNAL FROM THE LABOR MARKET THAT THIS LABOR MARKET IS WEAKENING, THE ECONOMY IS WEAKENING AND THAT PUTS PRESSURE ON THE FED TO LOWER ITS BENCHMARK NTEREST RATE.

>> Cathy: TRYING TO FIRE A FEDERAL RESERVE GOVERNOR.

WHAT ARE THE DANGERS OF HIS?

>> THIS IS INCREDIBLY DANGEROUS.

IF YOU THINK ABOUT THE PAST, YOU KNOW, FOR THOSE OF US WHO CAN REMEMBER, WHEN PAUL VOLKER WAS CHAIR OF THE FEDERAL RESERVE, THE STORIES SINCE THEN OF THE EARLY 1980s IS THAT INFLATION HAS GONE LOWER AND LOWER.

AND THAT HAS REALLY BEEN TIED TO THE INDEPENDENCE OF THE FED.

NOW, LOOK, THE FED CHAIRMAN HAS TO GO BEFORE CONGRESS TWICE AND TESTIFY.

HE IS RESPONSIBLE TO THE CONGRESS.

THEY'RE NOT NAIVE.

SO BY SAYING THAT THEY'RE INDEPENDENT, THAT DOESN'T MEAN THEY'RE NOT AWARE OF WHAT'S GOING ON.

BUT THEY'RE OPERATING WITH A LONGER TERM CYCLE.

SO THIS INTERFERENCE, IT WEAKENS THE FED.

IT'S ALREADY HAD AN IMPACT ON THE FED, ON ITS INDEPENDENCE.

STEVEN MIRREN WHO TESTIFIED WHO HAS BEEN NOMINATED TO REPLACE KRUGER, THE GOVERNOR WHO STEPPED DOWN, HE'S JUST GOING TO TAKE A LEAVE OF ABSENCE FROM IS POSITION IN THE WHITE HOUSE.

HE'S NOT GOING TO RESIGN FROM THE WHITE HOUSE AND THE ODDS ARE HE'S GOING TO APPROVED FAIRLY SOON.

INDEPENDENCE OF THE FED IS IMPORTANT TO THE CREDIBILITY OF FED THAT IT CAN BRING DOWN INTEREST RATES.

>> Eric: REAL QUICK, THE PRESIDENT SAID YESTERDAY, THERE'S SO MUCH MONEY COMING IN FROM THE TARIFFS THAT A SMALL REBATE MA'AM BE POSSIBLE O THE AMERICAN PEOPLE.

>> YOU KNOW, UM, I'D BE VERY, VERY SKEPTICAL ABOUT THAT.

BUT THERE IS MORE MONEY THAN WAS EXPECTED THAT IS COMING INTO THE TREASURY.

AND SO ONE OF THE REASONS WHY YOU HAVEN'T SEEN A HUGE IMPACT IN THE BOND MARKET IS BECAUSE SOME OF THIS MONEY'S COMING IN, AND, LOOK, OUR DEBT AND DEFICIT ARE AT RECORD LEVELS, I MEAN, CLOSE TO RECORD LEVELS.

SO THEY'RE -- IT'S A LITTLE BIT OF MONEY.

>> Eric: ALL RIGHT.

>> Cathy: IT'S ALWAYS GOOD TO SEE YOU.