Economy Still Resilient Despite Weaker Jobs Report: Levy

The Federal Reserve's next move is uncertain after a recent jobs report showed weaker-than-expected numbers. Despite this, economist Mickey Levy believes the economy remains resilient and on a solid growth path. He points out that private sector employment grew by 30,000 in July, while local government employment declined due to a one-time drop in education jobs.

Levy also notes that labor force participation rates have been declining, with people choosing to leave the workforce for various reasons. This is despite businesses being efficient in managing labor inputs and arguing that there's not enough skilled labor supply. He attributes much of the economy's growth potential to productivity, which has continued to outpace forecasts.

Levy believes that the Federal Reserve, under Kevin Warsh's leadership, will eventually raise interest rates to combat above-target inflation. He expects this to happen by the end of the year, but acknowledges that it may take time for the Fed to adjust its policy.