"The Fed isn't gonna 4publicly say we want 5job losses. But I think the Fed knows and all the economists there that know that if employ¡¦, if the 6unemployment rate stays three and a half percent, you're not likely to calm our 7tame inflation.

Industries like 8leisure and hospitality, 9health care and government continue to 10lead the way in job gains. The job losses are coming from sectors like manufacturing and construction. Still, the labor market has remained 11stubbornly 12resilient. 

The unemployment rate dropped to 3.5 percent... 13average hourly earnings 14grew 0.3 percent from the month before. And the cooldown in hiring may not be enough to stop the Federal Reserve from 15raising interest rates again next month.

"Inflation is extremely high and it's hurting the working people of this country badly. We are 16taking the only measures we have to 17bring inflation down."

The Fed is aiming to engineer a 18soft landing for inflation but it's a difficult 19tightrope to walk.

"My guess is that the process of bringing down inflation will bring on a recession at some stage as it almost always has in the past."