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The Wall Street Journal's Chief Economics Commentator Greg Ip says the U.S. July jobs report reveals "a pothole economy." Tariffs, spending cuts and the illegal immigration crackdown are behind job growth being "at its weakest since 2020," Ip says.
Currently, job growth mostly relies on counter-cyclical sectors such as education and social services. Although the stock market hitting new highs suggests a perceived easing of trade-related uncertainties, question remains if this is "just a pothole, or does it tell us that we have a very rough road for quite a while ahead of us?" Ip asks.