Category: Jobs

Wall Street Plunges as Jobs Data Triggers Fed Rate

Wall Street experienced a sharp decline on Friday after the U.S. economy added 172,000 jobs in May, nearly double the expected 88,000, triggering investor expectations for Federal Reserve interest rate increases. The Dow Jones fell 0.55%, the Nasdaq dropped 3%, and the S&P 500 declined nearly 2% as traders bet the Fed would raise rates from the current 3.5-3.75% range to 3.75-4% by year-end. Responding to the market rout, Trump declared on Truth Social that “stocks should go up, not down” and claimed growth does not cause inflation, contradicting basic economic principles and the clear market mechanics at work.

Higher interest rates would substantially increase borrowing costs for major technology companies currently investing hundreds of billions in AI infrastructure through leveraged loans. Economist Seema Shah of Principal Asset Management stated the jobs report “reinforces that there is little basis for an easing bias from the Fed,” while Capital Economics economist Stephen Brown noted the data favors Fed officials inclined toward rate increases over cuts. The labor market resilience undercuts dovish Federal Reserve members’ argument that downside risks remain, making a rate hike substantially more likely later in 2026.

The market deterioration extended across asset classes as traders reassessed rates. Gold fell 2.2% to $4,388.92 per ounce, silver dropped 4.7% to around $70, and the pound weakened 0.3% to $1.339 against the dollar. Bitcoin, which surged to all-time highs above $122,000 following Trump’s election victory, fell below $60,000—its lowest level since October 2024—as investors rotated away from speculative assets ahead of expected rate increases. Bitcoin treasury companies saw combined market value plunge from a peak of $134 billion in October to $72 billion this week, and MicroStrategy announced it sold Bitcoin for the first time in four years, signaling deepening anxiety among cryptocurrency holders.

The broader tech sector faced mounting pressure as concerns about valuation bubbles intensified. Broadcom’s underwhelming earnings on Thursday triggered a $650 billion market value erasure from American microchip manufacturers, while the Nasdaq 100 posted its worst single day since October. Mohamed El-Erian, Allianz’s chief economic adviser, warned that markets face “unsettling volatility” as the widespread “buy the dip” mentality, conditioned by years of policy support, breaks down amid genuine economic headwinds from energy shocks and inflation pressures.

Energy prices remain a central economic wildcard driving inflation expectations and Fed rate decisions. A Bank of England Monetary Policy Committee member warned the energy shock from Iran conflict escalation is the “elephant in the room” for policymakers; Brent crude traded at $93.70 per barrel Friday but climbed to $126 in April over concerns about Trump-ordered strikes on Iran. The resilient labor market, combined with unresolved energy price volatility, leaves the Federal Reserve substantially closer to raising rates and narrows policymakers’ options for supporting asset prices that Trump has repeatedly demanded rise regardless of economic fundamentals.



(Source: https://www.telegraph.co.uk/business/2026/06/05/ai-bubble-tech-stocks-us-jobs-payrolls-ftse-100-markets/)

Trump’s Market Posts Fail as Stocks Fall Despite Strong Jobs Data

Stock markets experienced their worst day of 2026 on Friday, with the S&P 500 falling 2.6% and the Nasdaq dropping 4.2%, despite a jobs report showing 172,000 positions added in May, nearly double economist projections of 85,000. The unemployment rate held steady at 4.3%, yet the strong economic data failed to arrest the sell-off, which centered on semiconductor and artificial intelligence stocks.

Trump responded to the market decline with two posts on Truth Social, first demanding stocks should rise with positive jobs data, then declaring “IT’S RAINING JOBS” in an all-caps post attacking “Bloomberg Economists” and the Biden administration. Neither statement reversed the downward momentum, and stocks continued falling after his initial message. Trump’s posts contradicted basic market mechanics, which respond to interest rate expectations and inflation concerns rather than employment headlines alone.

Consumer sentiment fell for the third consecutive month as Americans confronted ongoing inflation pressures exacerbated by the closure of the Strait of Hormuz and Trump’s tariff policies, which have created additional economic headwinds. The market decline underscored investor skepticism about the administration’s economic trajectory, particularly amid volatile geopolitical conditions and trade uncertainty.

Trump’s attempt to dismiss economist credibility and blame the previous administration revealed a pattern of using social media to artificially influence market perception rather than address underlying economic challenges. His prior stock market commentary preceded substantial moves, while his Friday interventions produced no stabilizing effect, demonstrating the limits of presidential rhetoric in overriding market fundamentals.

The Friday selloff underscored that market confidence depends on institutional credibility and sound policy, not presidential proclamations on social media. Investor behavior reflected concerns about inflation persistence, tariff escalation, and geopolitical risk, conditions that Trump’s populist rhetoric and policy choices have either created or worsened.



(Source: https://www.mediaite.com/politics/trump/trump-feverishly-tries-to-reassure-markets-after-stocks-plummet-its-raining-jobs/)

Trump Admits Inventing Black Jobless Record Low Claim

President Donald Trump claimed at a Wisconsin event on June 5, 2026, that Black unemployment had reached record lows, then immediately acknowledged he did not know where the statistic originated. Federal data contradicts the claim: the Black unemployment rate stood at 6.6% in May 2026, higher than the 6.2% rate Trump inherited upon taking office in January 2025 and far above the actual record low of 4.8% set under President Joe Biden in April 2023. The claim represents another instance of Trump deploying fabricated statistics to misrepresent economic conditions.

Trump stated, “African American unemployment is now doing better than it’s ever done. And I don’t know where that stat came from, but I’ll take it.” The 6.6% May rate exceeded every monthly rate from March 2022 through December 2024 under Biden and remained above the 5.3% low set during Trump’s first term in 2019. Even the month-to-month improvement Trump referenced, a 0.7-percentage-point decline from April to May 2026, was not unprecedented; a 0.9-point decline occurred under Biden from March to April 2024.

Trump made multiple other false economic claims at the Wisconsin event without questioning their accuracy. He repeated the claim that “$18 trillion” is being invested in the country, a figure the White House’s own website contradicted by citing “$10.6 trillion” for “major investment announcements.” Trump asserted that “25 million” migrants entered the country under Biden; federal records documented under 11 million “encounters” during the Biden administration, with an estimated 2.2 million additional “gotaways” who evaded detection, making the figure nowhere near Trump’s number.

Trump also repeated the false claim that “the Biden administration had the worst inflation in the history of our country.” Peak Biden-era inflation reached 9.1% in June 2022, representing the highest rate in 40 to 41 years, not in U.S. history. The actual all-time high was 23.7% in 1920, and President Jimmy Carter’s peak inflation was 14.8% in 1980. Inflation had declined to 3% by January 2025, when Trump took office.

The White House did not respond to CNN’s requests for explanation of Trump’s Black unemployment claim sent Friday evening and Saturday morning. Trump’s pattern of advancing unverified or demonstrably false economic statistics while sometimes publicly questioning their origin reflects his consistent use of fabricated data to misrepresent his economic record and that of his predecessor.(Source: https://www.cnn.com/2026/06/06/politics/fact-check-trump-black-unemployment)

Trump Claims Tariff-Hit Farmers ‘Make Enough Money’

President Donald Trump addressed over 800 farmers at the White House on Friday, claiming that agricultural workers affected by his tariffs “make enough money” and questioning whether government financial assistance matters to them. The crowd fell silent after Trump’s remark about farmer income, despite cheering when he mentioned a $12 billion relief package announced in December to address tariff-related hardship.

Trump touted his administration’s farm support measures, including a $12 billion bridge payment plan, Environmental Protection Agency updates to renewable fuel standards for 2026 and 2027, and expanded Small Business Administration loan guarantees that raise government-backed shares from 75% to 90%. These initiatives were presented as comprehensive responses to agricultural sector pressures stemming from tariffs and the Iran war.

The president contrasted his approach with former President Joe Biden’s record, claiming Biden would not have provided similar assistance. However, Trump’s $12 billion bailout fails to adequately address the agricultural crisis created by his own trade policies, revealing the insufficiency of the relief relative to the damage inflicted by tariff implementation.

Trump’s dismissal of farmer concerns about financial stability contradicts the severity of agricultural economic strain caused by his tariff decisions. His claim that farmers earn sufficient income regardless of trade policy losses demonstrates disconnection from the documented financial hardship affecting the farming community.

(Source: https://www.mediaite.com/media/news/doesnt-matter-to-you-right-trump-claims-tariff-hit-farmers-make-enough-money/)

trump cancels October Jobs Report

The U.S. Department of Labor’s Bureau of Labor Statistics (BLS) has announced the cancellation of its October jobs report due to the ongoing government shutdown, marking a significant and troubling departure from standard protocol. This decision means that vital employment situation data for October will not be published, which is the first such occurrence since 2013. The BLS confirmed on its website that the inability to collect necessary household data led to this unprecedented move.

Originally scheduled for release on November 7, the jobs report was expected to provide critical insights into the nation’s employment landscape. However, the BLS cited the government shutdown as the reason for not being able to gather the requisite data for both the establishment and household surveys. As it stands, the household survey data will not be retroactively collected, further complicating the situation and diminishing transparency in economic reporting.

The announcement was made shortly after White House Press Secretary Karoline Leavitt indicated that the likelihood of the jobs report being released was slim, attributing blame to Democrats for the impasse. This politically charged environment has cast a shadow over the figures that are crucial for understanding economic trends and the overall labor market health.

Market analysts and observers, including the global tracker The Kobeissi Letter, have expressed alarm at the implications of this cancellation, which undermines public trust in economic data that the administration should be providing. The absence of these statistics leaves many unanswered questions about employment trends and economic recovery, especially as other key economic data is set to release under uncertain conditions.

Following the cancellation, the BLS plans to include the October data with the November report, which may prolong the wait for clarity on employment statistics. As the administration continues to grapple with the effects of the government shutdown, the fate of future reports hangs in a precarious balance, leaving the public and analysts with limited information on America’s economic recovery.

Kevin Hassett Claims October Jobs Data May Remain Unknown

Kevin Hassett, director of the National Economic Council under Donald Trump, expressed grave concerns over the release of October jobs data amidst an extensive government shutdown, suggesting it may never be available. Speaking on Fox News, Hassett highlighted that the ongoing political impasse has severely disrupted the essential federal statistical system, with White House officials like press secretary Karoline Leavitt pointing fingers at Democrats for the issue.

During the Fox News segment, Hassett explained the data collection process, mentioning that one of the primary surveys—the household survey—was not conducted in October. Consequently, while some employment figures may be produced, a complete unemployment rate will remain elusive. Hassett stated, “We’ll probably be able to concoct something, but we’ll never actually know for sure what the rate was in October,” reflecting the detrimental impact the shutdown has had on accurate economic reporting.

Further elaborating on the economic ramifications, Hassett remarked that the Council of Economic Advisors estimated the daily losses to be about $15 billion, leading to a significant decline in jobs—specifically referencing a loss of around 60,000 American jobs due to depressed economic output. Such fallout raises awareness regarding how deeply intertwined government operations are with the overall economy and how partisan conflicts can exacerbate dire economic conditions.

Hassett’s insights offer a sober view of the historical context, as Trump previously dismissed significant jobs data that did not align with his administration’s narratives. He notably fired the head of the Bureau of Labor and Statistics, reflecting a broader pattern in which valid economic analyses are suppressed or dismissed if they fail to support Trump’s agenda.

This situation underscores an alarming trend where political maneuvering directly impacts economic stability and the integrity of crucial data sets, which should ideally be free from partisan influence. As the shutdown continues, the prospect of reliable economic metrics diminishes, with long-term implications for policymakers and citizens alike.

IMLS Staff Placed on Leave Amid Trump Administration Cuts to Cultural Funding

The entire staff of the Institute of Museum and Library Services (IMLS) has been placed on administrative leave following a decision made by agency leadership and Department of General Services (DOGE) staff. This unusual move came shortly after President Donald Trump appointed Keith E. Sonderling as the acting director of IMLS, amidst a backdrop of executive actions aimed at reducing the size and effectiveness of federal agencies.

The IMLS, a crucial source of federal funding for libraries and museums across the United States, employs about 70 people. The agency has a significant role in providing grants, having awarded $266 million in funding to cultural institutions in the last year alone. With the recent executive order that aims to curtail federal resources, there are growing concerns regarding the sustainability of these vital programs.

According to the AFGE Local 3403 union, IMLS staff were informed via email about their 90-day paid leave and instructed to return government property while being locked out of their email accounts. This abrupt action raises alarm about the future of numerous programs that rely on federal support, leaving previous grant recipients in limbo as they await clarity from the agency.

Advocacy groups, including EveryLibrary, have expressed deep concerns, stating that without essential federal funds for libraries and museums, critical services across the nation may face elimination. Notably, small and rural libraries, which depend heavily on such resources, are likely to suffer the most from these cuts.

As federal support for cultural institutions faces unprecedented challenges under Trump’s administration, the ramifications of this decision could ripple through communities, affecting access to educational resources, programs, and services that many rely on. The potential disruption signals a troubling shift toward reduced investment in public education and culture at a time when such platforms are needed more than ever.

(h/t: https://www.npr.org/2025/03/31/nx-s1-5334415/doge-institute-of-museum-and-library-services)

Trump says he hopes George Floyd ‘is looking down’ and celebrating jobs report

President Trump on Friday strode to a lectern in the White House Rose Garden to tout an unexpectedly good jobs report that showed the U.S. unemployment rate falling in May to 13.3 percent, as 2.7 million people who had been furloughed due to the coronavirus crisis returned to work. 

During a 45-minute, stream-of-consciousness, often rambling speech, Trump all but declared victory in his administration’s response to both the pandemic and protests over the death of George Floyd, calling the jobs report a “tremendous tribute to equality.”

The president said he hoped Floyd, an unarmed black man who was killed by police in Minneapolis last week, would be looking down from heaven and approve of the job he is doing on the economy.

“Hopefully George is looking down right now and saying, ‘This is a great thing that’s happening for our country,’” Trump said. “This is a great day for him. It’s a great day for everybody.”

But according to data released by the Bureau of Labor Statistics on Friday morning, the unemployment rate for black Americans actually increased slightly, from 16.7 percent to 16.8 percent. Unemployment for Asian-Americans jumped from 14.5 percent to 15 percent. Overall, the number of permanent job losers — those who have not been on temporary layoffs — continued to rise, increasing by 295,000 in May to 2.3 million.

Pressed by a reporter about how the jobs report could be considered a “victory” for black Americans or Asian-Americans, or what his plan is to address systemic racism among U.S. police, the president again pointed to the reduction in unemployment.

“What’s happening in our country, and what’s been happening, is the greatest thing for race relations, for the African-American community, for the Asian-American, for the Hispanic-American community, for women, for everything,” Trump said. “Because our country is so strong, and that’s what my plan is.”

He talked at length about how surprising the job numbers were to economists and to business-show anchors. Although Friday’s figures were unexpected, there were no suggestions they were inaccurate.

Earlier in his remarks, Trump made a passing reference to the nationwide protests against police violence triggered by Floyd’s death, claiming his call to use the National Guard to quell the unrest in places like Washington, D.C., and Minneapolis had worked.

“We want to get all of this finished,” the president said.

Former Vice President Joe Biden, the presumptive Democratic presidential nominee, called Trump’s invocation of Floyd’s name in his speech on the economy “despicable.”

Trump’s comments came a day after the first public memorial for Floyd was held in Minneapolis, where the Rev. Al Sharpton mocked the president’s widely-criticized church photo op.

“We cannot use Bibles as a prop,” Sharpton added. “And for those that have an agenda that are not about justice, this family will not let you use George as a prop.”

[Yahoo]

Media

Breaking precedent, White House won’t release formal economic projections this summer that would forecast extent of downturn

White House officials have decided not to release updated economic projections this summer, opting against publishing forecasts that would almost certainly codify an administration assessment that the coronavirus pandemic has led to a severe economic downturn, according to three people with knowledge of the decision.

The White House is supposed to unveil a federal budget proposal every February and then typically provides a “mid-session review” in July or August with updated projections on economic trends such as unemployment, inflation and economic growth.

Budget experts said they were not aware of any previous White House opting against providing forecasts in this “mid-session review” document in any other year since at least the 1970s.

Two White House officials confirmed the decision had been made not to include the economic projections as part of the mid-session release. The officials, who spoke on the condition of anonymity to discuss internal deliberations, said that the novel coronavirus is causing extreme volatility in the U.S. economy, making it difficult to model economic trends.

The document would be slated for publication just a few months before the November elections.

“It gets them off the hook for having to say what the economic outlook looks like,” said Douglas Holtz-Eakin, a former director of the Congressional Budget Office who served as an economic adviser to the late senator John McCain (R-Ariz.).

Both liberal and conservative critics said the White House should publish its economic projections in line with the precedent set by prior administrations, regardless of the uncertainty caused by the pandemic. The White House under President Barack Obama continued to release these numbers during the Great Recession, although they were unflattering.

This year’s White House budget report is expected to include data on federal spending, along with information on enacted legislation, but not an annual federal deficit projection, the White House officials said. The officials said the White House will release the annual deficit for the year by the end of the fiscal year in October.

A senior administration official said in a statement that it would be “foolish” to publish forecasting data when it “may mislead the public.”

“Given the unprecedented state of play in the economy at the moment, the data is also extremely fluid and would produce a less instructive forecast,” said senior administration official, who spoke on condition of anonymity to describe the White House’s decision. “Furthermore, we remain in complete accordance with the law as there is no statutory requirement to release this information, just precedent, which, when compared to our current economic situation, is dismissible.”

The magnitude of the economic impact has grown by the week. The Treasury Department said earlier this month it plans to borrow $3 trillion from April through June to finance spending in response to the pandemic, while the monthly deficit in April soared to $738 billion.

On Thursday, the Labor Department reported that Americans filed another 2.1 million jobless claims last week, bringing the 10-week total to more than 40 million.

The budget review will include a brief summary of economic conditions to date. One official said White House staff are also busy with implementing the $2 trillion Cares Act aid package approved by Congress in March.

The economic projections are jointly produced by a “troika” consisting of the director of OMB, the chair of the White House Council of Economic Advisers, and the treasury secretary.

Since the release of the White House budget in January, the unemployment rate has skyrocketed from about 3.5 percent to close to 15 percent. President Trump has repeatedly expressed confidence in a rapid economic rebound from the virus, but mainstream economists and Wall Street forecasters have predicted unemployment could remain north of 10 percent through 2020 and into 2021.

Budget experts say there is no reason the White House would be unable to release its own economic projections. The Congressional Budget Office, for instance, updated its economic projections in both April and May as the coronavirus rippled through the U.S. economy.

[Washington Post]

Trump administration to introduce plan cutting food stamps for 750,000 people

The Trump administration is set to announce a plan that would cut food stamp benefits for approximately 750,000 people, Bloomberg News reported on Tuesday. 

The plan, which is scheduled to be announced Wednesday, will make it more difficult for states to gain waivers from a requirement that beneficiaries of food stamps work or are enrolled in a vocational training program, according to Bloomberg, which cited sources familiar with the matter.  

The work or vocational training requirement applies to recipients who are “able-bodied” or those who are not caring for a child under six years old. Under the current guidelines, states can receive a waver for work requirements for those receiving benefits from the Supplemental Nutrition Assistance Program (SNAP), or its former name, food stamps, if its unemployment rate is at least 20 percent above the national rate, according to Bloomberg.   

The national unemployment rate was 3.6 percent in October.

The regulation was initially proposed in February, and the administration predicted that the rule would end benefits for 750,000 people in its first year. The U.S. Department of Agriculture estimated that the move would save $1.1 billion in the first year and $7.9 billion over five years.

A person familiar with the measure confirmed to Bloomberg that the finalized regulation will have a similar impact. States seeking waivers under the rule would have to meet the stricter standards by April 1.

The Trump administration and GOP allies have long tried to reduce food stamp programs and implement federal restrictions. House Republicans tried to pass similar restrictions to the new rule last year, but the legislation was never passed in the Senate. 

The measure, which will be published in the Federal Register Thursday, is one of the three proposals that the Trump administration has backed. The administration has also sought to adapt “the types of government benefits that automatically qualify families for SNAP,”  according to a study from the Urban Institute. It has also called for changing the “approach to calculating standard utility allowances.”

The three programs together would limit food stamps for an estimated 3.7 million people and 2.1 million fewer households, according to the Urban Institute estimate. 

The Hill has reached out to the USDA for comment. 

[The Hill]

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