Jessica Kriegel expects the labor market to worsen over the next two months. She thinks big companies have “overhired” and are laying off those workers as they wait to see if AI can replace a larger percentage of jobs. She notes that losses in retail, leisure and hospitality reflect a consumer spending pullback. She discusses how tariffs and potential rate cuts could affect the economy, and how the government can use them. “We are now in unknown territory… [we need] that muscle of adaptability.”