The US economy posted solid gains in November, with existing home sales and retail activity both picking up. KPMG Chief Economist Diane Swonk calls these "extremely solid" results, pointing to a consumer base still willing to spend despite broader headwinds. Her comments came during a discussion with Scarlet Fu on Bloomberg Markets.

Swonk, however, tempered her optimism by linking weaker job growth directly to corporate cost pressures from ongoing tariffs. Businesses appear to be absorbing these added expenses rather than expanding payrolls. This hiring slowdown, while not yet a recession signal, suggests that trade friction is forcing companies to make tougher budget choices.

Looking ahead, the key question is whether consumer spending can continue offsetting the labor market's soft patch. If tariffs persist or escalate, companies may eventually be forced to cut staff, not just freeze hiring. For now, the economy shows clear momentum, but the trade war's drag on hiring remains a critical risk to watch.