Peter Schiff, chief economist at Euro Pacific Asset Management, commented on Friday, October 2, 2026, about the latest U.S. jobs report. Posting on X, Schiff claimed that not only were the September job additions below expectations, but previous months' figures were also revised downward. He specifically stated, "Not only were the 29K jobs created in Sept. below expectations, but as I predicted last month, July and Aug. were revised down by 31K and 29K respectively. My guess is that all three months will ultimately be revised even lower. We have a weak labor market with strong inflation."
The jobs report today indicated the U.S. economy added 29,000 jobs in September, significantly below the 89,000 expected. The unemployment rate rose to 4.2%, exceeding the 4.1% forecast. This follows reports that Fed Vice Chair showed a rate hike delay and that the bond market dictates interest rates. Strong Q2 growth with sticky core inflation had previously suggested the Federal Reserve would remain on hold through year-end.
Schiff's view implies that the Federal Reserve faces a challenging environment where economic growth, particularly in employment, is slowing while inflationary pressures persist. His prediction of further downward revisions suggests that the true state of the labor market could be even weaker than current data indicates. This scenario could complicate the Fed's monetary policy decisions, potentially leading to a period of stagflation as he suggests.
