What's Happening

Economy

Labor Market Slowdown Sparks New Concerns

What's going on: There are new signs that the US economy is faltering. (We know, not the news you wanted to hear on a Monday.) Last week, the Bureau of Labor Statistics reported the unemployment rate rose to 4.3% last month — the highest since October 2021. The report didn’t stop there, showing that the US also fell short of economists’ expectations when employers only added 114,000 jobs. That’s a major dip from hiring in June and from trends earlier this year. Temporary layoffs contributed to the higher unemployment rate, which could decrease once people return to work. The news came days after the Federal Reserve said it would keep interest rates at a 23-year high.

What it means: The combination of higher unemployment and slower hiring has economists ringing the alarm and questioning if the US is headed toward a recession. Before the latest jobs report, some economists had been optimistic about the US making a soft landing — that’s when inflation reaches the Fed’s target without the US entering a recession. Now, in the face of a potential hard landing or bumpy one, many say the Fed should have cut interest rates sooner. Right now, a rate cut isn’t expected until September. The other thing to keep in mind: If you’re thinking about switching jobs, it could take you longer to find a new one.

Related: Elon Musk Has a Hot Take on the Fed’s Decisions (Reuters)

US News

Plea Deal With the Accused 9/11 Plotters Revoked

What's going on: In a shocking reversal, the Pentagon canceled a plea deal with the alleged mastermind of the 9/11 attacks and his two accomplices. The original deal, which unraveled two days after it was announced, would have required the three men to plead guilty to murder and conspiracy charges in exchange for life in prison — meaning they’d avoid the death penalty. Now, Defense Secretary Lloyd J. Austin has scrapped the agreement, saying the responsibility for such a significant decision “should rest with me.” Austin will oversee the case, which will pursue the death penalty for all three men at Guantánamo Bay.

What it means: The plea deal, which had been in the works for more than two years, received mixed reactions from victims’ families and lawmakers. Some thought the agreement didn’t go far enough, while others said it symbolized closure. Meanwhile, a group representing the families of 9/11 victims told ABC News they were frustrated that they weren’t consulted about the original plea deal or how it was revoked. Time will tell when a trial takes place — before the deal, jury selection wasn’t even slated to start until at least 2026. Also unclear? How prosecutors will address ongoing questions over the CIA’s use of torture, which experts say could impact what evidence is used in court.

Related: Everything We Know About How The 9/11 Plea Deal Unraveled (NYT Gift Link)

Sports

Did Medal Dreams Just Go Down the (Seine) Drain?

What's going on: There is a new wave of concern about the Seine River. Belgium has pulled out of today’s mixed relay triathlon after one of the athletes fell ill. The team’s statement over the weekend didn’t provide specific details, but Belgian media is reporting the triathlete had an E. coli infection. It comes after the swimmer competed in last week’s women’s triathlon, which (you guessed it) took place in the Seine. Switzerland also reshuffled its relay roster after one of its athletes was diagnosed with a “gastrointestinal” illness.

What it means: Paris Olympic organizers maintain the water quality in the Seine is safe, and they’ve delayed races on the river as necessary. Still, this is the first time in over a century that swimming has returned to the river. One athlete said they’ve swam “in worse.” Others have taken questionable measures to prepare for their races, like not washing their hands to build up an E. Coli tolerance. Belgium seemed to send a message to organizers, saying they “hope that lessons will be learned for future triathlon competitions.”

Related: The Gender Controversy in Olympic Women’s Boxing, Explained (NPR)