Analysis: European Americans’ unemployment rate was unchanged from July. Asian Americans decreased 30 basis points and Latino Americans increased 30 basis points from July, respectively. African America’s unemployment rate increased by 30 basis points from July.
AFRICAN AMERICAN EMPLOYMENT REVIEW
AFRICAN AMERICAN MEN:
Unemployment Rate – 7.1%
Participation Rate – 69.8%
Employed – 9,893,000
Unemployed – 753,000
African American Men (AAM) saw a increase in their unemployment rate by 10 basis points in August. The group had an increase in their participation rate in August by 190 basis points, there highest participation rate in the past five months. African American Men gained 270,000 jobs in August and saw their number of unemployed increase by 30,000.
AFRICAN AMERICAN WOMEN:
Unemployment Rate – 6.7%
Participation Rate – 61.4%
Employed – 10,260,000
Unemployed – 739,000
African American Women saw a increase in their unemployment rate by 40 basis points in August. The group increased their participation rate in August by 30 basis points. African American Women gained 13,000 jobs in August and saw their number of unemployed increase by 45,000.
AFRICAN AMERICAN TEENAGERS:
Unemployment Rate – 24.8%
Participation Rate – 29.3%
Employed – 590,000
Unemployed – 195,000
African American Teenagers unemployment rate increased by 310 basis points. The group saw their participation rate increased by 10 basis points in August. African American Teenagers lost 24,000 jobs in August and saw their number of unemployed also increase 25,000.
African American Men-Women Job Gap: African American Women currently have 367,000 more jobs than African American Men in August. This is an decrease from 624,000 in July.
CONCLUSION: The overall economy added 22,000 jobs in August while African America added 260,000 jobs. From Reuters,”The warning bell that rang in the labor market a month ago just got louder,” Olu Sonola, head of U.S. economic research at Fitch Ratings in New York, said in reference to the U.S. labor market. “A weaker-than-expected jobs report all but seals a 25-basis-point rate cut later this month.” Fed Chair Jerome Powell had already reinforced rate cut speculation with an unexpectedly dovish speech at last month’s Fed symposium in Jackson Hole.”
Analysis: European Americans’ unemployment rate increased 10 basis points. Asian Americans increased 40 basis points and Latino Americans increased 20 basis points from June, respectively. African America’s unemployment rate increased by 40 basis points from June.
AFRICAN AMERICAN EMPLOYMENT REVIEW
AFRICAN AMERICAN MEN:
Unemployment Rate – 7.0%
Participation Rate – 67.9%
Employed – 9,623,000
Unemployed – 723,000
African American Men (AAM) saw a increase in their unemployment rate by 10 basis points in July. The group had a precipitous drop in their participation rate in July by 90 basis points. African American Men lost 129,000 jobs in July and saw their number of unemployed increase by 2,000.
AFRICAN AMERICAN WOMEN:
Unemployment Rate – 6.3%
Participation Rate – 61.1%
Employed – 10,247,000
Unemployed – 694,000
African American Women saw a increase in their unemployment rate by 50 basis points in July. The group increased their participation rate in July by 20 basis points. African American Women lost 1,000 jobs in July and saw their number of unemployed increase by 60,000.
AFRICAN AMERICAN TEENAGERS:
Unemployment Rate – 21.7%
Participation Rate – 29.2%
Employed – 614,000
Unemployed – 170,000
African American Teenagers unemployment rate increased by 250 basis points. The group saw their participation rate decreased by 80 basis points in July. African American Teenagers added 37,000 jobs in July and saw their number of unemployed also increase 15,000.
African American Men-Women Job Gap: African American Women currently have 624,000 more jobs than African American Men in July. This is an increase from 496,000 in June.
CONCLUSION: The overall economy added 73,000 jobs in July while African America lost 166,000 jobs. From CNBC, “This is a gamechanger jobs report,” said Heather Long, chief economist at Navy Federal Credit Union. “The labor market is deteriorating quickly.” The weak report, including the dramatic revisions, could provide incentive for the Federal Reserve to lower interest rates when it next meets in September. Following the report, futures traders raised the odds of a cut at the meeting to 75.5%, up from 40% on Thursday, according to CME Group data.”
Analysis: European Americans’ unemployment rate has remained steady for four straight months with virtually no change in unemployment rate. Asian Americans decreased 10 basis points and Latino Americans decreased 30 basis points from May, respectively. African America’s unemployment rate increased by 80 basis points from May.
AFRICAN AMERICAN EMPLOYMENT REVIEW
AFRICAN AMERICAN MEN:
Unemployment Rate – 6.9%
Participation Rate – 68.8%
Employed – 9,752,000
Unemployed – 721,000
African American Men (AAM) saw a increase in their unemployment rate by 170 basis points in June. The group had a mild rebound in their participation rate in June by 30 basis points. African American Men lost 117,000 jobs in June and saw their number of unemployed increase by 181,000.
AFRICAN AMERICAN WOMEN:
Unemployment Rate – 5.8%
Participation Rate – 60.9%
Employed – 10,248,000
Unemployed – 634,000
African American Women saw a decrease in their unemployment rate by 40 basis points in June. The group decreased their participation rate in June by 80 basis points. African American Women lost 84,000 jobs in June and saw their number of unemployed decrease by 50,000.
AFRICAN AMERICAN TEENAGERS:
Unemployment Rate – 19.2%
Participation Rate – 30.0%
Employed – 651,000
Unemployed – 155,000
African American Teenagers unemployment rate increased by 480 basis points. The group saw their participation rate increased by 210 basis points in June. African American Teenagers added 10,000 jobs in May and saw their number of unemployed also decrease 41,000.
African American Men-Women Job Gap: African American Women currently have 496,000 more jobs than African American Men in June. This is an increase from 463,000 in May.
CONCLUSION: The overall economy added 147,000 jobs in June while African America lost 193,000 jobs. From CNN, “It is becoming harder for Americans to find work: The average duration of unemployment rose from 21.8 weeks to 23 weeks, and the share of unemployed workers who have been out of a job for 27 weeks or longer rose to 23.3%, edging closer to a three-year high. Trump’s tariffs — and the dizzying back and forth on implementing them and pausing them — has caused many businesses to stall major decision-making or spending, including hiring.”
“It is the mark of an educated mind to be able to entertain a thought without accepting it.” — Aristotle
Each time Federal Reserve Chair Jerome Powell appears before Congress, particularly the House Financial Services Committee, a rare opportunity presents itself—one that could improve financial literacy at the highest levels of government and foster substantive dialogue on monetary policy’s profound impact on American households, businesses, and institutions. But that opportunity is almost always wasted.
Instead, the public is forced to endure yet another performance of political theater where elected officials, both Democrat and Republican, seem more concerned with going viral than going deep—more focused on five-minute gotchas than on fifty-year policy ramifications.
And for African America, whose economic institutions and family wealth face historic and systemic precarity, this continued dysfunction is not simply frustrating. It is dangerous.
The Purpose of Oversight or a Stage for Soundbites?
The Federal Reserve is arguably the most powerful economic institution in the world. Its chair, currently Jerome Powell, wields incredible influence over interest rates, inflation, labor markets, and the credit system. A hearing before Congress should be a time when policymakers probe deeply, ask sophisticated questions, and help inform the public through their own understanding.
Instead, what unfolds is often little more than ideological posturing. Members of Congress use their time to push personal or party agendas, cherry-pick statistics, or lob loaded questions with no intent of hearing the answer.
This isn’t oversight. It’s political performance art.
The House Financial Services Committee, charged with overseeing financial institutions, capital markets, and economic stability, must rise above this. Its role should be more than ceremonial. It should be educational—to itself and to the American people. But the overwhelming sense watching Powell’s recent testimonies is that most of the committee members lack even a basic understanding of how monetary policy functions, let alone how to interrogate it effectively.
Why It Matters for HBCUs and African American Economic Institutions
African America does not have the luxury of political and financial ignorance.
When inflation creeps higher, it isn’t just a line in a Bloomberg terminal. It is the difference between a Black student being able to afford books for the semester or choosing between groceries and tuition. It is a Black-owned small business having to lay off an employee because a loan’s interest rate jumped from 6% to 11%.
The lack of thoughtful interrogation of Powell’s monetary strategy reflects a more structural problem. There is a scarcity of African American economists in monetary policy circles. The Federal Reserve’s own ranks remain largely devoid of HBCU graduates, and few members of the House Financial Services Committee themselves come from economically marginalized backgrounds or have spent real time examining the consequences of macroeconomic policy on communities of color.
Yet these are the same communities most sensitive to interest rate swings, credit market freezes, or inflationary spikes.
And still, with this knowledge, Black America’s representatives—those on the committee and those adjacent—too often use their time during hearings for moral appeals or political slogans. But where is the policy meat? Where is the specificity? Where is the courage to press Powell on structural inequality in the Federal Reserve’s frameworks?
The Federal Reserve and the Myth of Neutrality
To be fair, the Federal Reserve, under Powell or any other chair, does not operate in a vacuum. But the institution often touts its political independence as a form of virtue. That independence, however, should not be mistaken for neutrality. The Fed’s policies have winners and losers.
From 2020 to 2022, the Fed’s monetary expansion saved financial markets—but also exploded asset prices, exacerbating wealth inequality. Homeowners gained equity. Renters fell behind. Banks consolidated more power while local lenders and community institutions—like Black banks—continued to struggle.
The committee could have questioned Powell on these outcomes. It could have demanded a racial wealth gap impact assessment of every major monetary policy decision. It could have interrogated how interest rate hikes disproportionately hurt historically marginalized borrowers. But those questions are never asked.
Instead, Powell is interrupted mid-sentence. Politicians talk over him. They make proclamations but ask no follow-ups. This behavior isn’t just disrespectful—it’s dangerous. And it’s a gross misuse of public time.
What HBCUs Can Teach Congress About Learning
At an HBCU, you learn that education is both a privilege and a weapon. It is something to be studied, sharpened, and used to build institutions. That approach—one rooted in discipline, humility, and preparation—is entirely missing from the House Financial Services Committee’s handling of monetary policy.
If a professor at Spelman or Howard or North Carolina A&T asked students to prepare a critique on central banking and one of those students responded with vague accusations or irrelevant political banter, they would be challenged to do better. Because rigor matters.
Imagine, instead, what would happen if HBCU economics departments had a seat at the table. Imagine if the committee regularly invited young scholars from Hampton, Morehouse, and FAMU to submit briefs or participate in Q&A sessions. Imagine a committee that used Powell’s visit as a chance to uplift new Black monetary scholars, who are often overlooked despite deep institutional knowledge.
There is no reason why an HBCU-trained economist should not be Chair of the Federal Reserve one day. But for that to happen, both access and expectation must change. We must expect more of Congress—and we must prepare ourselves to be in those seats.
The Price of Ignorance Is Paid in Communities Like Ours
Grandstanding doesn’t stabilize mortgage rates.
Political theater doesn’t ensure access to affordable credit.
Viral clips won’t help a Black farmer secure the funding needed to plant next season.
When the committee wastes its opportunity to genuinely understand and shape monetary policy, it abdicates responsibility for protecting those most vulnerable to economic volatility. Black communities cannot afford that negligence.
For instance, Powell was not questioned about how inflation-targeting might undervalue employment gains in Black communities. Nor was he asked whether the Fed’s models even consider racial employment disparities in real time. These are the kinds of questions that would surface if the committee viewed itself as learners—not performers.
A Call for Financial Statesmanship
What is needed in Congress is not just political courage but intellectual humility. An understanding that financial literacy is not just for constituents but must be a discipline practiced by lawmakers themselves.
The House Financial Services Committee could evolve into a place of high economic inquiry, a model of bipartisan dialogue around shared economic goals. But that will require members who read the footnotes of policy briefs, not just the headlines. Who consult experts across ideology. Who admit what they don’t know and ask better questions in return.
It also means creating a pipeline of informed staffers, many of whom should be HBCU-trained. Imagine a rotating fellowship where top students in finance and economics at Prairie View or Tuskegee serve one-year policy internships with members of Congress. Not only would this improve committee function, but it would democratize who gets to shape monetary discourse in the long run.
A Missed Opportunity That Cannot Keep Being Missed
Chair Powell is not infallible. His policies deserve scrutiny. But if the scrutiny is shallow, the Fed wins by default. Monetary policy deserves robust challenge—but that challenge must come with intellectual integrity, not political antics.
African American families, students, and business owners live with the real-world consequences of interest rate decisions every single day. They deserve elected officials who treat these hearings not as soundbite factories, but as classrooms—where hard questions are asked, where policies are dissected, and where the future is imagined more inclusively.
The Federal Reserve will always operate in the shadows unless Congress holds up a light. But to shine that light effectively, the House Financial Services Committee must first turn its cameras inward and ask whether it is performing or learning.
Because for communities like ours, the cost of their ignorance is far too high.
“Uncertainty is not an exception—it’s the economy’s new default. Our job isn’t to eliminate risk, but to build institutions resilient enough to thrive within it.” — Dr. Lisa D. Cook, Federal Reserve Governor& Spelman Alumna ’86
When Dr. Lisa D. Cook took the stage at the Council on Foreign Relations for the C. Peter McColough Series on International Economics, it was less a speech and more a declaration: the global economy is fragmenting, technology is compounding that fragmentation, and the Federal Reserve must remain nimble but principled in navigating this emerging disorder.
What makes Dr. Cook’s presence at the Federal Reserve so consequential is not simply her identity as the first African American woman to serve as a governor—though it is significant—but her lens. A lens forged not just through elite academic corridors, but one that dares to understand the edges of America’s economy—its marginalized labor markets, its precarious innovation system, and its uneven globalization. And if her remarks this week are any signal, Dr. Cook is actively shaping a monetary doctrine for this new epoch.
THE FEDERAL RESERVE AND ITS FRACTURED MANDATE
Dr. Cook reminded the audience that the Federal Reserve’s dual mandate—price stability and maximum employment—is being strained by new dynamics. Inflation, while down from pandemic-era peaks, remains stubbornly above target. Headline inflation is at 2.1 percent, core inflation at 2.5 percent—both still above the Fed’s 2 percent goal. On the employment side, job growth is steady, unemployment hovers at 4.2 percent, and labor force participation is not in freefall. But beneath these metrics lies disquiet.
That disquiet is coming from three fronts: trade protectionism, artificial intelligence, and long-term underinvestment in public innovation infrastructure.
In short, America’s economy is at a precipice—caught between inflation imported through tariffs and supply chain fragility, and deflationary pressures driven by automation and labor displacement.
Dr. Cook’s doctrine, it seems, is to hold the center.
TARIFFS: THE RETURN OF ECONOMIC NATIONALISM
Trade policy has re-entered the monetary discourse with a vengeance. For African American economists—and institutions like HBCUs that sit adjacent to both poor communities and international students from across the African diaspora—the discussion is no longer abstract. Dr. Cook underscored that tariffs, while politically popular, have a “nontrivial” inflationary effect.
Tariffs raise prices on imports, which businesses pass to consumers. But more importantly, they alter inflation expectations. And when inflation expectations become “unanchored,” monetary policy loses its credibility—and its traction.
This is not merely an economic concern, but a philosophical one. If the U.S. economy turns inward and abandons international trade cooperation, the financial consequences will not be equally shared. Institutions and people on the margins—like HBCUs, which rely on price-sensitive budgets and internationally sourced equipment—will be among the first to feel the tightening grip.
AI AND THE PRODUCTIVITY PARADOX
Artificial intelligence was one of the few bright spots in Dr. Cook’s analysis. While it introduces short-term labor displacement, it holds medium- to long-term potential for productivity gains, cost containment, and even inflation moderation.
Dr. Cook estimates productivity boosts from AI could range from 1 to 18 percent over the next decade. But this range, she admits, reflects the economic unknowns of the Fourth Industrial Revolution. For African American institutions, the message is twofold: AI will not wait for us to be ready, and without intentional investment in AI literacy and infrastructure, the economic benefits will bypass our communities entirely.
More than that, Dr. Cook emphasized the importance of how AI gets adopted. “It’s not job loss,” she clarified. “It’s task replacement.” The nuance matters. Black workers and businesses must advocate for job redesign, not job removal. This requires an active policy partnership between labor, government, and educational institutions.
HBCUs, with their historical ability to adapt curricula to new economic paradigms, have a window here. The time to build AI research centers, ethics think tanks, and public-private tech fellowships is not tomorrow—it is now.
UNCERTAINTY IS THE NEW NORMAL
Dr. Cook invoked former Fed Chair Ben Bernanke’s guidance: in times of heightened uncertainty, policymakers must plan for multiple scenarios. In Fed speak, this means optionality. In HBCU speak, this means resilience.
The Federal Reserve is not in a rate-cutting mood. Nor is it eager to hike. It is watching. And waiting. And watching some more. “The current stance is balanced,” Dr. Cook affirmed. “But that balance could shift in either direction.”
For HBCU leadership—especially those managing endowments, student financial aid disbursements, or capital investment strategies—this moment requires uncommon dexterity. Inflation could reaccelerate. Or the economy could cool into a stagflationary trap. The key is planning for a 2 percent interest world and a 6 percent one.
INNOVATION: TWENTY YEARS TO FRUITION
Perhaps the most poignant segment of Dr. Cook’s remarks came not from inflation or tariffs or AI—but from her reflections on innovation and time.
“It can take twenty years or more,” she noted, “from the time a student conceives an idea to the point it becomes a product on the market.”
That is a sobering timeline. And it is why public investment in basic research, early-stage science, and academic freedom matters so much. The ecosystem that birthed Silicon Valley started with small government grants, eccentric professors, and graduate students with uncertain job prospects.
For HBCUs, the lesson is urgent: waiting for federal investment in Black innovation ecosystems is no longer tenable. Institutions must pool their resources, coordinate R&D pipelines, and build their own version of the National Science Foundation if need be.
Tuskegee University had its agricultural labs. Howard had its medical research. North Carolina A&T and Prairie View have their engineering corridors. But the next phase of Black institutional development must consolidate these assets into a coordinated force, backed by investment funds, intellectual property banks, and patent commercialization arms.
THE GLOBAL BACKDROP: COORDINATION WITHOUT UNITY
On the global stage, Dr. Cook walked a careful line. She acknowledged that while central banks maintain regular dialogue—through G-7, G-20, OECD platforms—there is no grand consensus. Different countries have different mandates. The European Central Bank is laser-focused on inflation. The Bank of Japan must navigate currency volatility. The People’s Bank of China has geopolitical motives laced through its monetary calculus.
The Federal Reserve cannot outsource its decisions to global peers. But it can learn from them.
For African American policy circles and HBCU economics departments, this is a call to global literacy. We must teach our students to read the central bank minutes from Frankfurt, London, and Accra as readily as they read those from Washington.
INSTITUTIONAL IMPLICATIONS FOR HBCUs
What, then, should HBCU presidents, CFOs, and policy offices take from Dr. Cook’s remarks?
Protect Purchasing Power Inflation—especially if prolonged—can erode real endowment spending. HBCUs must explore inflation-hedged assets, indexed tuition strategies, and energy-efficient infrastructure.
Reimagine Labor Pipelines AI and global trade will redefine job descriptions. HBCUs must preemptively build training programs, certification pathways, and innovation hubs aligned with the labor market of 2030—not 2010.
Internalize Innovation If innovation takes 20 years, then we must stop relying on outside institutions to fund our intellectual property journey. We must build our own innovation endowments, grant programs, and incubators.
Globalize Strategically As America turns inward, HBCUs must look outward—toward African economies, Caribbean partnerships, and Latin American markets. Diversifying donor bases, research collaborations, and student recruitment internationally is no longer luxury. It is imperative.
Endowment Defense Against Rate Risk Whether rates rise or fall, HBCU financial managers must adopt more active duration management strategies and review fixed income allocations accordingly.
FINAL THOUGHT: THE JUDGMENT ECONOMY
Dr. Cook’s final words were a reminder that even in an era of algorithms and quantitative models, human judgment remains central.
The economy cannot be automated. And neither can policy. The strength of institutions, including the Federal Reserve, still rests on the character and clarity of its leaders.
For HBCUs and African American institutions broadly, Dr. Cook’s rise—and her vision—should be both inspiration and instruction. It is not enough to be present in the room. One must bring a philosophy. A framework. A doctrine.
The Lisa Cook Doctrine, if there is one, is clear: do not panic, do not stagnate, and never underestimate the power of intentional innovation guided by principled policy.
In an uncertain world, that kind of leadership is the rarest form of capital.
HBCU Money 