AMNA NAWAZ: Welcome to the "News Hour."

Job growth was better than expected in September,## with 119,000 new jobs added.

Those# were the best job gains since April.

GEOFF BENNETT: The unemployment rate rose to# 4.4 percent, its highest level in four years,## as about half-a-million people# reentered the labor force.

The## official report comes seven weeks# late, after the government shutdown,## making it the first federal snapshot of# the labor market since agencies reopened.

But key economic data is still missing## and questions remain about the true strength# of the economy.

The uncertainty now lands## squarely on the Federal Reserve as it# prepares to consider another rate cut.

Austan Goolsbee, president of the# Federal Reserve Bank of Chicago,## is one of the officials weighing that# decision.

I spoke with him earlier today.

Austan Goolsbee, welcome back to the "News Hour."

AUSTAN GOOLSBEE, President, Federal Reserve Bank# of Chicago: Yes, thank you for having me, Geoff.

GEOFF BENNETT: And let's start with# your reaction to the September jobs## report.

Looking at the numbers,# slightly better than expected,## solid hiring, but the unemployment rate# creeped up a bit.

What's your read on## what this report is actually saying# about the direction of the economy?

AUSTAN GOOLSBEE: Well, better late than# never.

We're not getting this number## until well after when we normally would# have gotten it.

So a little bit it's a## misleading indicator of where things# are headed because it's out of date.

But I think mostly the numbers show the job market# has remained steady in an unusual low-hiring,## low-firing kind of environment.

So, normally, if# you have low hiring, you have high firing and high## layoffs, or the reverse.

But here, whether because# there's a lot of uncertainty or for other reasons,## we're in a moment where the unemployment rate# remains fairly low by historical standards,## is gradually cooling, but# overall pretty steady, I think.

GEOFF BENNETT: You mentioned the delay in# getting this September jobs report.

Of course,## during the shutdown, there was a blackout# of official government economic data.

How much does that complicate the Fed's ability# to accurately assess the economy right now?

AUSTAN GOOLSBEE: A lot.

It complicates it a lot.

And the same people who are collecting# the job numbers also collect inflation## numbers.

And whereas, on the job side, we# at least have some pretty decent indicators## even when the official jobs numbers are# delayed or not coming out, we have some## private sector sources at the state level -- the# new unemployment claims give us some readings.

The Chicago Fed itself puts out its labor# market indicators.

On the inflation side,## it's even more problematic because there# aren't nearly as many private sector sources## to tell us about what's happening with# inflation.

So it definitely complicates## the job of a Central Bank if you're# not getting the information you need.

GEOFF BENNETT: There's been some anxiety# in the market this past week over whether## the surge in A.I.

investment was turning# into something of a bubble.

Where do you## stand on that?

Is too much of the# economy leaning on that sector?

AUSTAN GOOLSBEE: It might be.

Look, it's always hard to figure out if.. very high valuations in the stock market.# If you're old enough, you will remember the## late '90s and going into 2000, and it does# have some things that feel in that nature.

That said, it's been a major determinant powering# business investment in the country.

Normally,## business investment is quite cyclical.# Even if you knew it were a bubble,## can a Central Bank pop a bubble?

Is# that appropriate?

I don't know.

I do## think very low interest rates in the# face of a bubble threaten to fuel it.

So it's something that I'm monitoring.# And the Chicago Fed, we're monitoring## quite a lot for financial stability# reasons if you could have a popping## bubble.

That has caused recessions in# the recent past in the United States.

GEOFF BENNETT: So what's all that mean for the# potential for another rate cut in December?

AUSTAN GOOLSBEE: I don't like -- I never like,# as you know, tying our hands before we go into## the meeting, when we're still going to# get some information, and especially## at moments like this where we're trying to# figure out, is this a transitional moment?

I do want to hear from my colleagues because they# have some interesting world views different from## mine.

That said, I'm no -- looking at rates# over the medium run, I still think with stable## employment, if we can get back on a path to# 2 percent inflation and get past this uptick## that we have been seeing, I think rates can# go down a fair amount from where they are now.

But I'm a little uneasy front-loading too many# rate cuts and just assuming that the inflation## we have seen is going to be transitory.

That# makes me uneasy with too much front-loading.

GEOFF BENNETT: And even as the Fed has eased rates# over this past year, the pressure from President## Trump, as you well know, has not let up.

Just# yesterday, he went after Fed Chair Jerome Powell## again, encouraged the treasury secretary# to pressure Powell as well.

Take a listen.

DONALD TRUMP, President of the United States:# Mortgage rates are down, despite the Fed.

I mean,## Scott, you have got to work on this# guy.

He's got some real mental problems.

(LAUGHTER) DONALD TRUMP: No.. be honest.

I'd love to fire# his ass.

He should be fired.

(LAUGHTER) DONALD TRUMP: The guy's grossly incompetent.

GEOFF BENNETT: What's this all mean for# the Fed's independence and, beyond that,## perceptions of the Fed's independence?

AUSTAN GOOLSBEE: I have been in# the Fed coming on three years.## I was a research economist 30 years before that.

Economists are close to unanimous that a Central# Bank must be independent of political interference## when setting the interest rate.

If there# isn't independence of the Central Bank,## inflation comes roaring back, growth is# worse, unemployment is worse, because## somebody's got to be taking a broader view, and# that Fed independence is crucially important.

So it pains me if we're having public# discussions about whether the Fed## should be independent.

It should be independent.

Now, if the president has a view# about where we are in the economy,## he, like -- there are many people who have views# on the economy.

And I try to keep track of those## of those views and take seriously what the# arguments are.

At the end of the day, the FOMC,## my observation is, everybody# takes the job very seriously.

And you can look at the minutes.

You can look# at the transcripts for yourself.

It's not about## anything other than the economic outlook# and the data.

And that's what it should be.

So, outside opinions are important, and# everybody has one.

But the decisions have## got to be made on the data.

And that takes# place inside the room of the FOMC meeting.

GEOFF BENNETT: Austan Goolsbee,## president of the Federal Reserve Bank of# Chicag.. AUSTAN GOOLSBEE: Yes, wonderful to see you again.