Federal Reserve Governor Lisa Cook: July Jobs Report Could Signal Turning Point for US Economy

Federal Reserve Governor Lisa Cook has called the July jobs report "concerning," stating it could signal a turning point for the US economy. The report showed a sharp cooling in the labor market, with a lower-than-expected 73,000 jobs added in July and revisions down by nearly 260,000 in the prior two months. The unemployment rate ticked up to 4.2% from 4.1%. Cook notes that the revisions are "somewhat typical of turning points."

Federal Reserve Governor Lisa Cook has expressed concern over the July jobs report, indicating that it could signal a significant turning point for the US economy. The report revealed a sharp cooling in the labor market, with employers adding only 73,000 jobs in July, far below expectations. Additionally, the prior two months' job gains were revised down by nearly 260,000. The unemployment rate rose to 4.2% from 4.1% in June. Cook noted that these revisions are "somewhat typical of turning points" [1].

The Federal Reserve, which kept interest rates steady two days before the report's release, cited concerns over the impact of tariffs on inflation. Fed Chair Jerome Powell mentioned that the labor market's stability allowed the central bank to gather more information before adjusting rates. However, the July jobs report suggests a potential slowdown in the economy, which could influence future monetary policy decisions [1].

The U.S. Department of Labor Building in Washington, D.C. The July jobs report reveals a worrisome decline in the U.S. labor force, driven by the Trump administration’s immigration policies. (Photo by ALEX EDELMAN/AFP via Getty Images) AFP via Getty Images

The report also highlights a decline in the U.S. labor force, driven by the Trump administration’s immigration policies. The Bureau of Labor Statistics household survey shows a decline of 1.2 million foreign-born workers between January and July 2025, and a drop of 1.7 million since its peak in March 2025. This decline presents problems for the U.S. economy, as immigrants have accounted for over half of American labor force growth in each of the last three decades [3].

Despite the concerning indicators, the Federal Reserve is likely to remain cautious in its approach to monetary policy. The central bank will continue to monitor the labor market closely and may adjust its policies if the data suggests a more significant slowdown in the economy. Investors should remain vigilant and monitor the economic indicators closely for any signs of a potential turning point.

References:

[1] https://www.bloomberg.com/news/articles/2025-08-06/fed-s-cook-says-jobs-revisions-could-point-to-turning-point
[3] https://www.forbes.com/sites/stuartanderson/2025/08/01/july-jobs-report-casts-new-warning-on-immigration-and-worker-declines/