Sen. Elizabeth Warren (D-Mass.) is not holding back on President Donald Trump's economic record. Her argument? Weaker job growth, slowing wages, and rising costs are squeezing American workers.

July Jobs Fall, Wage Growth Slows

On Tuesday, Warren took to X to call out Trump's economic policies, pointing to the latest labor-market figures.

"Trump's failed economic policies are hammering America's workers," Warren said. She added, "July: 23,000 jobs lost. Wage growth: slowest in five years."

She further said, "And after accounting for rising costs, workers' paychecks are shrinking."

Warren contrasted these numbers with Trump's promises, saying, "Trump promised an economic boom. Instead, families are getting squeezed."

Conflicting Views on Trump's Economy

Not everyone sees the economy the same way. Earlier, Moody's chief economist Mark Zandi blamed lower labor demand, Trump's immigration policies, tariffs, and the war in Iran for putting pressure on the U.S. economy. He warned of slower growth and higher inflation, but noted that AI had helped prevent the economy from falling into "complete shambles."

On the other side, Rep. Jim Jordan (R-Ohio) said the economy had been moving in a "pretty good direction," while acknowledging that high costs continued to pressure middle- and working-class families. He said Republicans had delivered on tax cuts and were working to improve affordability.

Meanwhile, Trump himself warned that expansive government benefits could eventually weaken the economy. He argued that losing companies and their tax contributions could shrink the tax base and lead to "hunger and squalor and death and destruction."

Full-Time Employment Continued to Decline

Last week, The Kobeissi Letter highlighted deeper weakness in the U.S. labor market. Full-time employment fell by 106,000 in July to 133.55 million, its lowest level since December 2024. That marked the fourth consecutive monthly drop, bringing the total decrease to 1.11 million. Since January 2025, full-time employment has fallen by 2.35 million.

The market commentator noted that full-time employment was only 1.4% above pre-pandemic levels, while the full-time employment-to-total employment ratio dropped to 82.4%.

"The US labor market is weak beneath the surface," The Kobeissi Letter said.

The unemployment rate fell to 4.1% in July, while the labor-force participation rate declined to 61.4%.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.