AMNA NAWAZ: Let's turn now to the economy and# a disappointing new jobs report today showing## employers cut 92,000 jobs in February.

The# report also included downward revisions for## the previous two months and a slight rise in# the unemployment rate from 4.3 to 4.4 percent.

Altogether, it paints a picture of a labor# market struggling across a number of sectors,## including some that were engines of recent growth,# like health care and construction.

Stocks fell on## the news, capping a week of declines, along with# a rapid rise in oil and gas prices, a result of## President Trump's war with Iran.

The average price# of a gallon of gas rose 11 percent this week.

To unpack today's numbers,# we turn now to Diane Swonk,## chief economist at KPMG.# That's a tax and advisory firm.

Diane, good to see you.

So with the usual caveat it's important# .. the losses in today's report were widespread.# What does all this tell you about the economy?

DIANE SWONK, Chief Economist, KPMG:# Well, part of the losses in health care,## this was the one sector that was really sort of# the one-legged stool holding up the overall labor## market.

And we had a major strike in California# and Hawaii that shaves 27,000 health care worker## jobs off with some collateral damage as well in# the unemployment rate with temporary layoffs.

So that was part of it.

But even taking that# out, it still was a lot of red ink.

And when## you lose the one stool holding you up, you# go negative and the unemployment rate rises.

AMNA NAWAZ: There's been a lot of talk about# employers having to navigate uncertainty around## shifting tariff policies.

How big a factor# is that uncertainty in all of this right now?

DIANE SWONK: It really acts like a tax on the# economy.

There's just no question about it.

We had escalating uncertainty last year# and we're seeing it again this year.## What's important about it is, it's much like a# broken stoplight at a busy intersection.

When you## see a busy -- a broken stoplight, everybody slows# down, traffic backs up.

Some people opt out and## wait for the traffic light to fixed or traffic to# clear before they pass through the intersection.

That's the same kind of response# you get from employers in periods## of heightened uncertainty.

They cut back on# investment decisions, most notably on hiring.

AMNA NAWAZ: So, if we zoom out# just a little bit here, Diane,## outside of the two most recent recessions,# last year saw the lowest pace of average## job growth since 2003.

January, we# saw unexpectedly high numbers.

Now## we have unexpectedly low numbers.

What# does this mean about long-term trends?

DIANE SWONK: We're still seeing a very, very slow,## sort of slushy labor market.

It's# a low-hire, low-fire labor market.## That is not a good place to be.

It's a labor# market where it's very hard for those people## who've not gotten a job yet, new college grads# or new high school grads, that are just entering## the labor market to get their foot in the door# when firms are not hiring at a healthy pace.

There's not a usual churn in the labor# market that we have seen, and, in fact,## the ability to hop jobs and get a# premium has almost evaporated now.

AMNA NAWAZ: So in a low-fire,# low-hire economy, what does that## mean for how the average American is# experiencing this economy right now?

DIANE SWONK: Well, it really has been what# we have been in for the last year now,## and that is not good.

What we have# seen is both concerns about inflation## and job security intensify, even# as the economy continued to grow.

We had almost a jobless boom in 2025,# and that is not -- it's showing up in## the dissonance that people say how they# feel about the economy because they're## dealing with this sort of tension of both# higher unemployment and higher inflation.

And inflation is much like stock returns.# Stock returns compound over time and make## people wealthy.

On the other side of that,# inflation has been high and too high for five## years.

It's compounded and put the level# of prices out of reach for far too many.

AMNA NAWAZ: In about 30 seconds or so, I have# left, we know the Federal Reserve is going## to meet in another week-and-a-half to discuss a# possible rate cut.

What do you think we will see?

DIANE SWONK: They're not going to be able to cut# rates at this meeting.

There will be at least one## dissent, maybe two.

But I think this is a very# difficult situation for the Fed to navigate.

It's## not the 1970s, but we are five years in with# inflation too high, and that context matters.

AMNA NAWAZ: Diane Swonk, chief economist at KPMG,## thank you so much for your time.# Always good to speak with you.

DIANE SWONK: Thank you.