99 Posts

Senate Democratic Leader Chuck Schumer slammed President Donald Trump for firing the commissioner of the Bureau of Labor Statistics over the monthly jobs report, likening the move to that of a dictator.

The BLS’ monthly labor report showed that the US economy added just 73,000 jobs last month, and the monthly totals for May and June were revised down by a combined 258,000 jobs.

“Today, we got some of the worst labor numbers that we’ve gotten in a long time,” Schumer said on the Senate floor, adding later, “So of course, that’s very bad news for the economy. But what does Donald Trump do? Instead of trying to fix the economy, he shoots the messenger.”

Schumer noted that Dr. Erika McEntarfer, the ousted BLS commissioner, was confirmed by the Senate to the role, 86-8, with the support of Vice President JD Vance, then a senator from Ohio.

“As long as Donald Trump keeps firing messengers who bring him truth — he hates truth when he doesn’t agree with it — as long as he does that, this economy will not improve. Inflation and cost to the American people will not go away. New jobs will not return to this country,” he said.

“He ought to start, start governing like a leader, not like someone who imitates authoritarian leaders,” Schumer said.

Secretary of Labor Lori Chavez-DeRemer announced that deputy commissioner William Wiatrowski will serve as acting commissioner of the Bureau of Labor Statistics after Dr. Erika McEntarfer was quickly fired at President Donald Trump’s directive.

“I support the President’s decision to replace Biden’s Commissioner and ensure the American People can trust the important and influential data coming from BLS. During the search for a replacement, Deputy Commissioner William Wiatrowski will serve as Acting Commissioner,” Chavez-DeRemer posted on X.

DeRemer added that “a recent string of major revisions have come to light and raised concerns about decisions being made by” McEntarfer, who was appointed by former President Joe Biden. Trump called for her to be fired over accusations that she “manipulated” jobs report numbers “for political purposes.”

Wiatrowski became deputy commissioner under Obama in 2015 and served as acting commissioner both during Trump’s first term and later in March 2023 during Biden’s term, according to the Bureau of Labor Statistics.

CNN has reached out to Wiatrowski for comment.

White House press secretary Karoline Leavitt has celebrated previous jobs reports this year.

In a post on X after the June jobs report, Leavitt said, “For the FOURTH month in a row, jobs numbers have beat market expectations with nearly 150,000 good jobs created in June. American-born workers have accounted for ALL of the job gains since President Trump took office and wages continue to rise.”

The Bureau of Labor Statistics is nonpartisan, and businesses and government officials rely on the accuracy of its data to make determinations about investment, hiring, spending and all sorts of key decisions.

“It’s outrageous for anyone in government to question the integrity of the BLS,” said Jason Furman, a Harvard professor and former Obama economic adviser. “Accurate statistics are essential to the economy.”

Furman doubted that replacing Dr. Erika McEntarfer would compromise the BLS, but he said even the possibility or appearance of that notion “would be bad.”

“Countries that have tried to fake those statistics have often ended up with economic crises as a result,” Furman said.

Mark Zandi, chief economist at Moody’s Analytics, said the BLS’ data is at the “highest standard,” and “as accurate as it can be.”

“Anything that undermines that or even the perception of that high standard is deeply worrisome,” Zandi said. “I’ve never seen anything even close to this.”

At Moody’s, Zandi said he has hired a number of former BLS economists whom he called “fantastic.”

“They do great work,” Zandi said. “They are critical to a well-functioning economy.”

Democratic Sen. Mark Warner of Virginia accused Trump of working the referees.

“Firing the ump doesn’t change the score,” Warner said. “Americans deserve to know the truth about the state of the Trump economy.”

US stocks were battered by a sell-off on Friday as Wall Street reckoned with President Donald Trump’s tariff regime.

The Dow closed lower by 542 points, or 1.23%. The broader S&P 500 fell 1.6% and the tech-heavy Nasdaq Composite dropped 2.24%.

The S&P 500 and Nasdaq posted their worst day since May and April, respectively. The Dow posted its worst day in over a month and closed its worst week since early April.

While Wall Street had been expecting Trump’s tariffs, investors are digesting the widespread implications for business activity, international trade and global economic growth.

“The market is tired of the tariff drama,” Peter Ricchiuti, senior professor of finance at Tulane University, told CNN. “There is also the recognition that the tariff damage will get worse.”

“Companies shipped an enormous amount of product before some of the tariffs were implemented,” Ricchiuti said. “This inventory will be winding down and prices will be reflecting the tariffs.”

Here’s what else happened in markets:

• Europe’s benchmark stock index posted its biggest single-day loss since April.
• Stocks in Asia fell but were only moderately lower, except in South Korea, where the benchmark index tumbled 3.88%.
• US Treasury bonds saw a massive rally after a weaker-than-expected jobs report. Investors snapped up bonds to lock in high rates as traders ramped up bets the Federal Reserve will cut rates in September.
• Wall Street’s fear gauge, the VIX, surged 25%, as volatility returned to markets.
• Gold, a safe haven during uncertainty, rallied 1.9%. The yellow metal posted its best day since early June.

A member of the Federal Reserve’s Board of Governors announced Friday that she is resigning several months before the end of her term.

Fed Governor Adriana Kugler is stepping down from her role, effective August 8. The Fed did not cite a reason for her departure. Her term was slated to end in January 2026.

“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Kugler said in a statement. “I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market.”

She was absent from the Fed’s latest meeting, in which officials voted to hold borrowing costs steady for the fifth consecutive time.

Kugler’s resignation means Trump will be able to name a replacement sooner than expected; this person could then be eligible to serve as Fed chair.

According to Fed rules, the chair can be chosen only among the current members of the Fed’s board. The chair must be confirmed by the Senate.

Contenders for the top job at the central bank include Treasury Secretary Scott Bessent; Kevin Warsh, a former Fed governor; Christopher Waller, a current Fed governor; and Kevin Hassett, the director of the White House’s National Economic Council.

President Donald Trump’s new tariffs could mean your happy hour cocktail or glass of wine at a dinner on date night will cost you more.

Imported wine and spirits encompass 35% of revenue of all US sales in the alcohol market, according to the Wine and Spirits Wholesalers of America (WSWA).

Much of it comes from countries in the European Union. Trump announced a trade deal imposing a 15% tariff on most imports from the bloc.

The tariffs applying to alcohol products is a change from wine and spirits being exempt from additional duties in some countries, according to the Distilled Spirits Council of the United States.

Here how some beverages will be impacted:

• Wine: Wine from countries like France, Italy and Spain will be subject to the 15% rate imposed on the EU. Other popular wines come from Australia and New Zealand, which have 10% and 15% tariff rates, respectively.
• Gin: Many gins are imported from the Netherlands and the UK. Hendrick’s, a popular brand, is made in Scotland. Significant imports of gin also come from Canada, according to the Distilled Spirits Council of the United States.
• Vodka: Absolut Vodka and Svedka Vodka are both produced in Sweden, and Ketel One, another popular brand, is made in the Netherlands, both members of the EU and subject to 15% tariffs. France is also a significant exporter of vodka to the US, the Distilled Spirits Council says.
• Whiskey: Scotland is particularly known for its whisky production as well as Ireland. Japan is also a significant producer, which will now also face a 15% tariff. Canadian whisky is also imported to the US.
• Rum and tequila: Millions of dollars of rum is imported to the US from Jamaica and the Dominican Republic, and tequila from Mexico will also likely be impacted.

US stocks were off their lowest levels of the day but struggling to mitigate losses in afternoon trading.

The Dow was down 550 points, or 1.25%. The S&P 500 was down 1.6%, and the Nasdaq dropped 2.2%.

The Dow has dropped almost 3% this week and is on track for its worst week since early April, when President Donald Trump initially unveiled his “Liberation Day” tariffs.

The S&P and Nasdaq are down 2.4% and 2.2% this week, respectively.

The S&P is on pace for its fourth day of losses in a row after previously clinching six consecutive days of record highs.

“Market was out of gas,” Keith Lerner, co-chief investment officer at Truist Wealth, told CNN. “It’s a case of high expectations being met with a little bit of bad news.”

“The market was priced for a smooth ride with little disruptions,” Lerner said. “We’re going through a gut check.”

Read more here.

President Donald Trump has fired Dr. Erika McEntarfer, the commissioner of the Bureau of Labor Statistics, a source confirmed to CNN.

In a post on social media, the president accused McEntarfer of manipulating the monthly jobs reports for “political purposes.”

“She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can’t be manipulated for political purposes,” Trump said on Truth Social.

McEntarfer was confirmed by the Senate 86-8 in January 2024 for a term of four years.

CNN has reached out to McEntarfer for comment.

Trump also continued his attacks against Federal Reserve Chair Jerome Powell in the post, saying Powell “should also be put ‘out to pasture.”

The headline and post have been updated to reflect that McEntarfer has been fired. Read more about the story here.

Stocks across Europe closed lower on Friday as global investors assessed how President Donald Trump’s tariff campaign might impact trade and economic growth.

Europe’s benchmark Stoxx 600 index fell 1.89%, while Germany’s DAX index dropped 2.66% and France’s CAC 40 index fell 2.91%.

Each of the indexes posted their biggest single-day loss since early April.

While the European Union hammered out a trade deal with the United States that includes a 15% tariff on imports of EU goods, economists and politicians have drawn attention to the lack of detail in the deal and how tariffs might hurt the European economy.

“Equity markets were flashing red as Trump’s tariff regime hits another milestone,” Russ Mould, investment director at AJ Bell, said in a note.

Meanwhile, Trump plans to impose a 39% tariff on imports from Switzerland, which is among the highest rates laid out by the president. The Swiss stock market was closed on Friday for a national holiday.

“It’s fair to say there is a broad negative tone at the end of the trading week and recent upwards market momentum has evaporated,” Mould said. “We’ve got new rates galore and that means investors need to spend time understanding what that means for companies in their portfolio.”

Today is merely the next episode in Trump’s tariff story — it’s unwelcome, hence the market dip; but it’s not entirely unexpected, hence the lack of a full market crash.

— Russ Mould, investment director at AJ Bell

President Donald Trump’s new round of tariffs could have an impact on American consumers and the United States’ relationships with its allies.

CNN’s Anna Cooban breaks down what you should know:

@cnnPresident Trump has announced a new round of tariffs on key American trading partners. But what does that really mean for US consumers, and America’s relationships with its allies? And will these new measures be implemented at all? CNN’s Anna Cooban explains. #cnn #news

♬ original sound – CNN

President Donald Trump’s newest trade policy and tariff regiment will go into effect for most countries next week, but global stock markets have been reacting today to the plan that cements a break from decades of free trade and signals a new protectionist era.

Here a recap of the policy, per the White House:

• The “universal” tariff for goods coming into the United States will remain at 10%, the same level that was implemented on April 2.
• That 10% rate will apply only to countries with a trade surplus – countries to which the United States exports more than it imports, which is most of them.
• A 15% rate will serve as the new tariff floor for countries with which the United States has a trade deficit. About 40 countries fall into this category.
• More than a dozen countries have tariff rates that are higher than 15%, either because they agreed to a trade framework with the United States or because Trump sent their leaders a letter dictating a higher tariff.
• The new trade policy also establishes a 40% additional penalty on so-called transshipments — goods that are shipped from a high-tariff country to a low-tariff country and then re-shipped to the US.
• See the full list of what each country will pay here.

Other key headlines:

• Increase on Canada: Trump signed an executive order increasing the tariff rate on Canadian goods that aren’t exempt from the USMCA free-trade agreement from 25% to 35%.
• Tariffs on other industries: Tariffs on specific industries that have been announced include steel, aluminium, copper, automobiles and car parts. Tariffs on pharmaceuticals and semiconductors are pending under an investigation that Trump initiated in April.
• Low-cost packages: The long-standing tax exemption for low-cost packages will end on August 29, the White House said. The so called “de minimis” exception currently applies to commercial shipments worth less than $800. These can be imported to the US without taxes and complicated paperwork.
• Stock market reaction: US markets took a big hit this morning. Additionally, the CBOE Volatility index, or VIX, jumped 22% and hit its highest level in over one month. Stock markets in Asia and Europe finished lower today.
• Jobs report: Meanwhile, the US economy added just 73,000 jobs last month, weaker than expected, according to the Bureau of Labor Statistics. The monthly totals for May and June were revised down by a combined 258,000 jobs. Traders are now betting the Federal Reserve will cut interest rates at its next meeting in September.

CNN’s Ramishah Maruf, David Goldman, Tori B. Powell, John Liu, Alicia Wallace and Byron Manley, John Towfighi, Ivana Kottasová and Elise Hammond contributed to this post.

@cnnPresident Trump has announced a new round of tariffs on key American trading partners. But what does that really mean for US consumers, and America’s relationships with its allies? And will these new measures be implemented at all? CNN’s Anna Cooban explains. #cnn #news

♬ original sound – CNN

Following President Donald Trump’s announcement of a new trade policy that will go into effect next week and a jobs report showing US job growth has stalled in July, some Republican lawmakers are defending the administration’s economic policies.

Senate Majority Leader John Thune, who has criticized increasing tariffs in the past, dismissed concerns that tariffs have had an impact on jobs in the US.

“I wouldn’t read too much into one jobs report. I think you gotta look at trends. And you know, we’ve seen a lot of evidence that the tariffs impact has been minimal, if any,” Thune said. Still, he added, “I think you know my views on tariffs.”

Meanwhile, Sen. Roger Marshall of Kansas said, “The tariffs are working perfectly. It’s driving lots of manufacturing jobs back home.” He argued that the weaker-than-expected July jobs report is another reason the Federal Reserve should lower interest rates.

“I think the jobs number is one more reason we should bring down interest rates, right?” Marshall added. “Bringing it down just one point would be such a big difference for Kansas farmers.”

When asked if he supports Trump’s new tariff plan, Sen. John Hoeven of North Dakota told CNN he thought Trump has done well in negotiations.

“We’re getting better trade terms, and I’m very anxious to see what that’s going to translate into more sales,” said Hoeven, whose state is a major agriculture area.

However, Sen. Lisa Murkowski of Alaska indicated some skepticism with the administration’s tariffs policy, saying, “I think with the tariffs, it’s kind of going all over the place.”

Global leaders are waking up to a revised set of tariffs on their exports to the United States today. They are set to go into effect next week and affects virtually every nation.

While most countries are facing rising tariffs, some are breathing a sigh of relief after securing last-minute deals.

Here’s how some countries have reacted:

• New Zealand’s Trade Minister Tom McClay said the hiked tariffs unwarranted, after the country’s exports to the US were subjected to a 15% base rate. That’s up from 10%.
• In Switzerland, the government responded with “great regret” to the US decision to impose 39% tariffs on Swiss imports despite progress in bilateral talks and the “very constructive stance” of Switzerland.
• Australian Trade Minister Don Farrell hailed it’s 10% tariff rate — the minimum rate announced by the White House — as a “vindication” for how its government conducted diplomacy with the US.
• Bangladesh praised the result of its trade negotiations with the US as a “decisive diplomatic victory,” after Trump announced a 20% tariff on its goods.
• Malaysia, which was facing the possibility of a 24% tariff on its exports, negotiated down to 19% — something its trade ministry called a “significant achievement.”
• Cambodia, which reached its deal with the US yesterday, is now also facing a 19% tariff, instead of the originally announced 49%.
• South Africa, which is facing the highest tariffs at 30%, said talks with the US would continue. President Cyril Ramaphosa said negotiations are the best way forward.

US stocks were under pressure midday and trying to stay off their lowest levels of the day.

The Dow was down 550 points, or 1.25%. The S&P 500 was down 1.5% and the Nasdaq was down 2.1%.

The Dow was down 790 points earlier in the day. The S&P dropped almost 2% and the Nasdaq fell 2.6% earlier.

Despite paring some losses, the S&P 500 was still on track for its worst day since May.

Read more on the market reaction here.

Traders are betting the Federal Reserve will cut interest rates at its next meeting in September after a weaker-than-expected jobs report on Friday signaled the labor market is slowing down.

Traders on Friday were pricing in a 79% chance the Fed cuts rates in September, according to the CME FedWatch Tool. That’s compared to just a 38% chance on Thursday.

The surge in bets on Fed rate cuts comes after the July jobs report showed the economy added fewer jobs than expected while there was an enormous downward revision to job growth in May and June.

The Fed has a dual mandate to maintain price stability and a healthy labor market. Federal Reserve Chair Jerome Powell on Wednesday said the central bank was still trying to discern the impact of tariffs on inflation before making a decision on rate cuts in September.

The jobs report on Friday is fuel for the argument to cut rates. There are two inflation reports and one more jobs report on the docket before the Fed’s rate decision in September.

“The weak July jobs report will increase pressure on the Fed to cut rates at the September decision,” Bill Adams, chief economist at Comerica Bank, said in an email. “However, a [September] cut is still not a slam dunk. If shrinking labor supply holds the unemployment rate steady in the next jobs report as inflation rises, the Fed will likely hold rates unchanged.”

White House Council of Economic Advisers Chairman Stephen Miran addressed the weaker-than-expected July jobs report on Friday, downplaying concerns that it reflects broader economic issues or fallout from President Donald Trump’s trade policies.

“This jobs report isn’t ideal. There’s no way around that,” Miran told CNN’s Kate Bolduan, noting that much of the slowdown was tied to “anomalous factors.”

The US economy added 73,000 jobs in July, while May and June figures were revised down by a combined 258,000, according to new data from the Bureau of Labor Statistics.

Miran attributed about 60% of the downward revision to seasonal adjustment issues, particularly around education employment. He also claimed that since Trump took office, the economy has added approximately 2.5 million jobs for American-born workers while employment among foreign-born workers has declined by about 1 million due to the administration’s immigration policy.

Addressing concerns over trade-related uncertainty, Miran said the administration’s recent trade agreements have “unlocked enormous new potential” and that tariff concerns are “fading away.”

Miran also defended the administration’s broader economic strategy, saying some disruption was inevitable during what he described as a major overhaul of the global trade system.

“Don’t forget, we were in the midst of restructuring the global trading system in a way that hasn’t been done in decades,” Miran said. “The President is standing up for American workers and American firms … and of course, that was going to induce some uncertainty.”

Pressed by Bolduan on whether uncertainty around trade has truly passed, Miran pivoted to emphasize other sources of recent economic anxiety, the “one big beautiful bill.”

“A few months ago, we had uncertainty of is the American economy going to be subject to the largest tax hike in history that will drive it in it into a recession,” he said, referring to the president’s sweeping domestic policy bill passed on July 4th.

Among the many warning signs in Friday’s jobs report, this could be the most concerning: Black unemployment in America hit 7.2%, the highest level since October 2021.

That number comes with a notable caveat: The Black unemployment rate is a notoriously volatile number because of its small sample size. However, this figure has been rising sharply for two straight months – it stood at 6% in May.

Economists often grow concerned when the Black unemployment rate trends higher, because that tends to serve as a harbinger of bad news to come for the overall public.

Specifically, an increase in the Black unemployment rate almost always precedes the rise in the general population unemployment rate. This is because a higher percentage of Black Americans than Americans of other races are in temporary jobs or lower-income jobs, which tend to be the first that employers cut when they grow concerned about the economy.

The weaker-than-expected jobs numbers for July (the US economy added just 73,000 jobs last month) were overshadowed by something entirely separate: Revisions to the two prior months.

The monthly totals for May and June were revised down by a combined 258,000 jobs.

The prior two months’ revisions were “stunning,” said Diane Swonk, chief economist at KPMG, in an interview with CNN.

May’s estimated 144,000 net gain was revised down by 125,000 to 19,000; and June’s preliminary tally of 147,000 was slashed by 133,000 to 14,000, according to data released Friday from the Bureau of Labor Statistics.

“It’s stalling out right now,” Swonk said of the labor market.

With those monumental revisions, the meager job gains in June were the weakest since December 2020, the last time the labor market had monthly job losses. The pace of job creation seen so far this year is the weakest in decades, outside of recessions.

“This is absolutely the worst major economic report since the end of the pandemic era,” Joe Brusuelas, chief economist at RSM US, wrote to CNN via email.

Volatility returned to Wall Street on Friday as traders grappled with the new phase of President Donald Trump’s tariff campaign and a US jobs report that stoked concerns the economy might be weaker than anticipated.

The CBOE Volatility index, or VIX, jumped 22% Friday morning and hit its highest level in over one month.

The VIX, Wall Street’s so-called fear gauge, breached the threshold of 20 points, which is associated with a noticeable level of volatility.

The Dow was down 615 points, or 1.4%. The S&P 500 fell 1.57% and the Nasdaq dropped 2%. The S&P and Nasdaq were on track for their biggest single-day losses since May and April, respectively.

While digesting Trump’s tariff announcement, markets took a hit this morning when a weaker-than-expected jobs report was released, which included a downward revision to the jobs numbers in June and May.

Treasury yields fell as investors snapped up bonds in a flight to safety and to lock in high rates.

“Job growth missed badly in July, and the market reacted fast—yields dropped and Fed rate cut bets surged,” Larry Tentarelli, Chief Technical Strategist for Blue Chip Daily Trend Report, said in a note.

Meanwhile, the US dollar dropped. The dollar index, which measures the dollar’s strength against six major foreign currencies, fell 1.1%. Gold, a safe haven during uncertainty, rallied 1.5%.

It is also a Friday and the start of August, when trading activity can be lower than usual, contributing to swings in the market.