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Jobless rate ticks higher in October for white Americans, bucking the broader trend

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A jobseeker holds flyers during the New York Public Library’s annual Bronx Job Fair & Expo at the the Bronx Library Center in the Bronx borough of New York, US, on Friday, Sept. 6, 2024. 

Yuki Iwamura | Bloomberg | Getty Images

The unemployment rate for white Americans inched higher in October, according to data released Friday by the Department of Labor.

In October, white Americans saw their jobless rate rise to 3.8% from 3.6% in the month prior. This trend bucked the overall unemployment rate for the country, which held steady at 4.1% in October from September, as well as for the other demographic groups.

The jobless rates for Black and Hispanic workers were unchanged last month at 5.7% and 5.1%, respectively. Asian Americans saw their unemployment rate creep lower to 3.9% from 4.1%.

On the other hand, the jobless rates for both white men and women edged higher in October. For the men, it increased to 3.5% from 3.4%. For women, it rose to 3.3% from 3.1%.

While Hispanic women saw their jobless rate climb to 5.2% from 4.8%, unemployment rates for their male counterparts slid to 4.0% from 4.1%. The unemployment rate also ticked lower for Black women to 4.9% from 5.3%, while it climbed to 5.7% from 5.1% for Black men.

To Heidi Shierholz, president of the Economic Policy Institute, this jump indicates the distortion and volatility in month-to-month data, especially considering that the jobless rate for Black men dropped to 5.1% in September from 5.9% in August.

“I think that the big increase that we saw in Black male unemployment in October was really just renormalizing after the big, unusual drop in September,” she told CNBC.

Shierholz added that October’s unemployment numbers were also unusually affected by the hurricanes and labor strikes, making it even more difficult to compare these data points.

“You never want to focus on one month’s data, and that is more true than ever right now because this month’s data was so distorted by these unusual temporary factors,” she said.

In October, the overall labor force participation rate — the percentage of the population either employed or actively seeking work — ticked down to 62.6% in October from 62.7% in September.

Among white workers, the labor force participation rate also inched lower to 62.2% in October from 62.4% in the prior month, while it declined to 66.9% from 67.4% for Hispanic workers. Within Asian workers, the participation advanced to 65.5% in October from 65.3% in September, while it held steady for Black Americans at 62.9%.

— CNBC’s Gabriel Cortes contributed to this report.

Economics

Donald Trump chooses hedge fund executive Scott Bessent for Treasury Secretary

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Scott Bessent, founder and chief executive officer of Key Square Group LP, during an interview in Washington, DC, US, on Friday, June 7, 2024.

Stefani Reynolds | Bloomberg | Getty Images

President-elect Donald Trump has signaled his intention to nominate hedge fund executive Scott Bessent as his Treasury secretary, sources tell CNBC and NBC News.

The founder of Key Square Group had been considered a strong favorite for the position along with a few other close contenders.

As head of Treasury, Bessent, 62, will be both the U.S. fiscal watchdog as well as a key official to help Trump enact his ambitious economic agenda. Both a Wall Street heavyweight and advocate for many of the incoming president’s economic goals, he would come to office at a critical time as the U.S. wrestles with a growing economy alongside long-festering debt and deficit issues.

Like Trump, Bessent favors gradual tariffs and deregulation to push American business and control inflation. In addition, Bessent has advocated for a revival in manufacturing as well as energy independence.

The prospective nominee also has deep philanthropic ties through Yale University along with Rockefeller University and Classical American homes Preservation Trust.

One obstacle Bessent will have to overcome is his past affiliation with billionaire investor and global gadfly George Soros. Bessent served as chief investment officer for Soros’ fund.

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Economics

Trump might name Kevin Warsh as Treasury chief then Fed chair later, report says

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Kevin Warsh

Jin Lee | Bloomberg | Getty Images

President-elect Donald Trump is considering naming Kevin Warsh as Treasury secretary then ultimately sending him off to serve as Federal Reserve chair, according to a Wall Street Journal report.

A former Fed governor himself, Warsh would move over to the central bank after current Chair Jerome Powell’s term expires in 2026, according to the Journal, which cited sources familiar with Trump’s thinking.

The speculation comes with Treasury being the last major Cabinet position for which Trump has yet to state his intention.

Various reports have put Warsh as one of the finalists with Apollo Global Management CEO Marc Rowan and hedge fund manager Scott Bessent. Among the potential scenarios would be one where Bessent would lead the National Economic Council initially then go over to Treasury after Warsh takes over at the Fed.

However, Trump is known for the propensity to change his mind, and the report noted that nothing has been finalized.

Read the full Wall Street Journal story here.

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Economics

Matt Gaetz withdraws from consideration as America’s attorney-general

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MATT GAETZ, Donald Trump’s choice for America’s attorney-general, spent November 20th meeting senators and telling reporters it had been “a great day of momentum”. The next day, however, Mr Gaetz withdrew his name from consideration, acknowledging that “my confirmation was unfairly becoming a distraction.” This was not self-effacement from a MAGA firebrand, but a reflection of reality: Mr Gaetz had little chance of being confirmed even by a Republican-controlled Senate. The Republican Party may belong to Mr Trump, but his power is not absolute.

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