>> CATHY: FULL SHOW FOR YOU TONIGHT.

WE'LL COVER THE HISTORIC OUSTER OF REPUBLICAN HOUSE SPEAKER KEVIN MCCARTHY, THE HISTORIC POST-SEASON WIN BY THE MINNESOTA TWINS, AND TALK ABOUT SOME TOUGH STATISTICS ON KIDS AND GUN VIOLENCE.

>> ERIC: BUT WE START TONIGHT WITH THIS MORNING'S SURPRISING NATIONAL ECONOMIC NEWS.

THE U.S. ADDED 336,000 JOBS IN SEPTEMBER, NEARLY DOUBLE THE INCREASE EXPERTS EXPECTED.

WHAT DOES THIS MEAN FOR THE ECONOMY OVERALL?

WILL MINNESOTA JOB NUMBERS, DUE OUT LATER IN THE MONTH, FOLLOW THE SAME TREND?

JUST TWO OF THE QUESTIONS WE HAVE FOR CHRIS FARRELL, WHO COVERS ECONOMICS FOR AMERICAN PUBLIC MEDIA.

SHATTERED INVESTORS' EXPECTATIONS, THAT WAS ONE OF THE HEADLINES ONLINE, I SAW TODAY.

>> YES.

>> Eric: HOW SO?

>> THE CONSENSUS EXPECTATION WAS WE'RE GOING TO CREATE 170,000 JOBS, WE CREATED 336,000 JOBS.

AND HERE'S THE THING, WE SHOULD JUST ENJOY THIS MOMENT.

MORE PEOPLE HAVE JOBS.

THE ECONOMY'S CONTINUING TO GROW.

INFLATION IS COMING DOWN.

AND THIS ECONOMY HAS BEEN REMARKABLY RESILIENT AND MORE AND MORE -- AND, YET, AT THE SAME TIME, THERE'S STILL PEOPLE ON THE SIDELINES, THERE'S STILL PEOPLE WHO ARE UNDEREMPLOYED, YOU KNOW, WHO ARE STILL LOOKING FOR WORK.

BUT THE GOOD EWS IS ORE AND MORE PEOPLE KEEP LOOKING FOR WORK.

THEY'RE NOW CONVINCED THAT THIS JOB MARKET IS REAL, EMPLOYERS ARE STILL LOOKING FOR WORKERS.

SO THIS IS A VERY RESILIENT ECONOMY, AND THAT'S WHAT THAT REPORT SAID.

BY THE WAY, THEY ALSO REVISED UP THE JOB NUMBERS FOR THE PREVIOUS MONTH, SO THEY'RE ACTUALLY EVEN BETTER THAN THEY WERE.

>> Eric: FOR JULY.

>> YEAH.

>> Cathy: WHERE W THE -- WHERE ARE THE JOBS COMING FROM, WHAT SECTORS?

>> THIS ONE IS ACROSS THE BOARD.

THERE WAS A LOT OF HIRING, THERE WILL BE A LOT OF HIRING FOR THE PUBLIC SCHOOL TEACHERS.

SO YOU SAW A BIG INCREASE IN THAT.

BUT IT REALLY WAS ACROSS THE BOARD.

HOSPITALITY, RESTAURANTS, VERY STRONG, BACK TO PREPANDEMIC LEVEL.

THE ONLY AREA WHERE YOU STILL ARE SEEING GENUINE CONCERNS IS MORE IN THE HEALTHCARE AREA.

IN THIS REPORT, IT WASN'T AS STRONG AS YOU WOULD EXPECT.

BUT IF THAT'S THE THING THAT I TOOK AWAY FROM IT IS, THIS WAS ACROSS THE BOARD, AND THEN WHEN YOU DO -- WHERE YOU DO SEE WEAKNESSES, LIKE IN WAREHOUSES, STUFF LIKE THAT, IT'S ALMOST LIKE WE'VE BEEN HAVING SOME ROLLING RECESSIONS, YOU KNOW, CERTAIN SECTORS AREN'T DOING VERY WELL, WHILE OTHERS ARE DOING WELL.

AND THEN THAT SECTOR STARTS DOING BETTER, BUT ANOTHER SECTOR STARTS WEAKENING.

SO IT'S NOT LIKE THIS ECONOMY IS JUST GOING ALL GUNS ALL THE TIME, YOU KNOW, REALLY STRONG.

BUT EACH SECTOR OF THE ECONOMY SEEMS TO BE WORKING OUT ITS PROBLEMS.

>> Eric: THE FED, NOVEMBER 1st, THE PLOT THICKENS, I GUESS, FOR THE BOARD.

>> YES, THE PLOT REALLY DOES THICKEN.

BECAUSE THE CONSENSUS EXPECTATION WAS THEY WERE NOT GOING TO RAISE THEIR BENCHMARK INTEREST RATE.

NOW THERE'S A SENTIMENT THAT THEY WILL RAISE THEIR BENCHMARK INTEREST RATE BECAUSE OF THE STRONG ECONOMY.

I THINK THERE'S A GOOD REASON TO BE SKEPTICAL ABOUT THAT BECAUSE INTEREST RATES ARE ALREADY UP.

SO THE TEN-YEAR TREASURY BILL, TREASURY NOTE, WHICH IS YOUR BENCHMARK INTEREST RATE, LIKE MORTGAGES, EVERYTHING'S PRICED OFF THE TEN-YEAR.

YOU KNOW, IT'S NEARING 5%.

>> Cathy: CONSUMER SPENDING IS DRIVING THE MOMENTUM, RIGHT?

REALLY.

SO, RAISING INTEREST RATES DOESN'T SEEM TO BE TAMPERING THAT DOWN.

>> IT'S TAMPING IT DOWN A LITTLE BIT.

BUT NOT THAT MUCH.

I MEAN, HERE'S THE THING.

THE CONVERSATION OVER THE PAST COUPLE YEARS, AS THIS ECONOMY HAS COME OUT OF THE PANDEMIC, HAS BEEN, WE HAD THIS HIGH INFLATION, WE NEED TO HAVE A HIGH UNEMPLOYMENT RATE.

AND, SO THEREFORE, BUT WHAT'S HAPPENING S, WE DON'T HAVE A HIGH UNEMPLOYMENT RIGHT?

IT'S STAYED ALTHOUGH -- LOW, 3.8, 3.6, 3.8% NOW.

THE INFLATION RATE IS COMING DOWN.

THE RESEARCH SAYS THE TRADE-OFF, SOMETIMES THERE'S A TRADE-OFF, SOMETIMES THERE'S NOT A TRADE-OFF.

AND, SO, THIS STORY THAT WE'VE HEARD THAT WE'RE OING TO HAVE A RECESSION, WE NEED TO HAVE HIGHER UNEMPLOYMENT, WE NEED TO HAVE PEOPLE IN PAIN AND SUFFERING IN ORDER TO BRING DOWN INFLATION RATE JUST TURNS OUT NOT TO BE TRUE.

>> Eric: BUT SOME OF THE ECONOMIC GAINS AREN'T GETTING TO THE MAIN STREET FOLKS, FOLKS THAT WORK FOR A LIVIN'.

>> WELL, THEY ARE.

I MEAN, IT TAKES TIME.

BUT THE THING IS, YOU KNOW, IF YOU GO BACK, YOU KNOW, TO THE PERIOD FROM 2000 TO 2019, YOU KNOW, FOR MANY OBS THERE'S A LINE OF PEOPLE OUT THE DOOR.

AND, SO, MANAGEMENT WOULD GO, WE'RE ONLY GOING TO PAY YOU THIS AMOUNT OF MONEY.

AND BY THE AY, IT'S A JANITOR JOB, DO YOU HAVE A MASTER'S DEGREE?

YOU DON'T HAVE A MASTER'S DEGREE, WE'RE NOT GOING TO HIRE YOU BECAUSE WE WANT PEOPLE WITH MASTER'S DEGREES.

NOW ALL THEY WANT IS, BY THE WAY, WOULD YOU LIKE TO BE A JANITOR?

AND THEY ARE PAYING MORE.

THERE ARE MORE BENEFITS.

AND MOST OF THE WAGE GAINS RELATIVE TO INFLATION HAVE BEEN IN THE TRADITIONALLY LOW-WAGE SECTORS OF THE ECONOMY.

>> Cathy: ALWAYS GOOD EXPLANATIONS FROM YOU.

THANK YOU.

>> THANKS A LOT.

>> Eric: HAN