Global markets are selling off significantly as US recession fears come to the fore.

Is this an overreaction or have we reached an economic turning point?

I'm Alpha Nathan and this is Goldman Sachs exchanges.

Today I'm speaking again with David Miracle, Chief U.S. economist for Bowman's Sachs research about the outlook for the U.S. economy, the risk of recession, and the

feds pack from year.

David, welcome back to the program.

Thanks, Allison.

Let's start with Friday's jobs report because it obviously came in well below expectations

and it's really seemed to spook investors in the last couple of days.

So what do you make of the report and is this investor

reaction overdone?

I think it was a weak report, but I do think that some of the fears were overdone.

It was a weak report in the sense that job growth in both the establishment survey and the

household survey was soft, too soft, I think, to keep up with labor supply growth and the

unemployment rate also rose two-tenths. Now for a couple of reasons though I would not

take the July report at face value as kind of a new statement of where we are. There were some

signs that job growth was depressed by some temporary factors.

The Bureau of Labor Statistics said that the Hurricane Barrel was not an issue for the data.

But there was a big increase in the number of people not at work because of weather and we also

saw a very large increase in temporary layoffs.

So whatever it was, something temporary seems to have weight a little bit on job growth.

This simpler point is that absent some big

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