The U.S. added 147,000 jobs in June, sailing past economist expectations of 100,000.
The unemployment rate held steady at 4.1 percent, according to Labor Department data. Economists had expected the jobless rate to rise to 4.3 percent.
The strong economic report comes ahead of Trump’s July 9 deadline to reimpose his “Liberation Day” tariffs on countries that haven’t reached a new trade deal with the U.S.
The president paused the bulk of his tariffs for 90 days to give countries time to negotiate. Trump says he has no intention of extending the pause, teeing up a crucial week for the global economy.
Trump has so far announced frameworks for deals with Vietnam, China and the United Kingdom.
Trump got a win this week when Canada backed off a planned digital services tax on U.S. companies after the president threatened to suspend trade talks. Later, he blasted Japan, calling the country “spoiled” for not making a deal.
The Hill’s Alex Gangitano reports that Trump is playing hardball:
"Markets are now bracing for impact before the July 9 deadline, facing volatility similar to that experienced in the wake of Trump’s April 2 declaration of new tariff rates on all major trading partners."
Trump said in an interview with Fox News’s Maria Bartiromo earlier this week that letters are going out soon with new tariff rates, saying “we don’t care, we’ll just send a high number out” to some countries.
MEANWHILE…
Federal Reserve Chairman Jerome Powell has cited the tariffs as the reason for his refusal to cut interest rates.
Powell said this week he expects inflation to strike this summer, although prices have remained steady despite economic forecasts of a spike.
Trump has railed against Powell on a near-daily basis, accusing him of refusing to lower rates for political reason.
On Wednesday, Trump called for Powell to “resign immediately.” Powell still has a year left in his term.
The overseer of Fannie Mae and Freddie Mac is calling for Congress to investigate Powell, accusing him of lying to Congress.
Federal Housing Finance Agency Director Bill Pulte said Powell lied to members of the Banking panel when answering questions about renovations to the Fed’s Washington, D.C., headquarters, which have drawn questions from Republican lawmakers.
The Hill’s Sylvan Lane writes:
“When pressed by senators on the Fed’s alleged $2.5 billion renovation plan, Powell said some of the more fanciful inclusions were part of older plans and have since been scrapped. Other costs, such as repairing elevators that go directly to board members’ offices and marble fixtures, were basic upkeep of features that have always been in the building, he said.”
Pulte called the testimony “deceptive” and “nothing short of malfeasance.”
