European Stocks Rise After U.S. Tariff Delay - Jordan News
He stated that negotiations with the 'bloc (European Union) are not progressing fast enough.'
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Roya News
4 hours ago
- Roya News
Trump orders firing of US official as cracks emerge in jobs market
President Donald Trump said Friday he has ordered the firing of a key economic official, accusing her of manipulating employment data for political reasons after a new report showed cracks in the US jobs market. US job growth missed expectations in July, Labor Department data showed, and revisions to hiring figures in recent months brought them to the weakest levels since the Covid-19 pandemic. Without providing evidence, Trump lashed out at the department's commissioner of labor statistics, writing on social media that the jobs numbers "were RIGGED in order to make the Republicans, and ME, look bad." In a separate post on his Truth Social platform, he charged that Commissioner Erika McEntarfer had "faked" jobs data to boost Democrats' chances of victory in the recent presidential election. "McEntarfer said there were only 73,000 Jobs added (a shock!) but, more importantly, that a major mistake was made by them, 258,000 Jobs downward, in the prior two months," Trump said, referring to latest data for July. "Similar things happened in the first part of the year, always to the negative," Trump said, insisting that the world's biggest economy was "booming" under his leadership. He later told reporters "we need people that we can trust," accusing the economic official of inflating hiring figures under former president Joe Biden's administration. 'Dangerous precedent' The United States added 73,000 jobs last month, while the unemployment rate rose to 4.2 percent from 4.1 percent, said the Department of Labor earlier Friday. Hiring numbers for May were revised down from 144,000 to 19,000. The figure for June was shifted from 147,000 to 14,000. This was notably lower than job creation levels in recent years. During the pandemic, the economy lost jobs. The employment data points to challenges in the key labor market as companies took a cautious approach in hiring and investment while grappling with Trump's sweeping -- and rapidly changing -- tariffs this year. The numbers also pile pressure on the central bank as it mulls the best time to cut interest rates. With tariff levels climbing since the start of the year, both on imports from various countries and on sector-specific products such as steel, aluminum and autos, many firms have faced higher business costs. Some are now passing them along to consumers. William Beach, who previously held McEntarfer post at the Bureau of Labor Statistics, warned that her firing "sets a dangerous precedent and undermines the statistical mission of the Bureau." The National Association for Business Economics (NABE) condemned her dismissal, saying large revisions in jobs numbers "reflect not manipulation, but rather the dwindling resources afforded to statistical agencies." "Firing the head of a key government agency because you don't like the numbers they report, which come from surveys using long established procedures, is what happens in authoritarian countries, not democratic ones," slammed Larry Summers, former US Treasury secretary under Democratic president Bill Clinton. 'Gamechanger' Heather Long, chief economist at the Navy Federal Credit Union, said Friday's jobs report was a "gamechanger." "The labor market is deteriorating quickly," said Long, noting that of the growth in July, "75 percent of those jobs were in one sector: health care." "The economy needs certainty soon on tariffs," Long said. "The longer this tariff whiplash lasts, the more likely this weak hiring environment turns into layoffs." It remains unclear when the dust will settle, with Trump ordering the reimposition of steeper tariffs on scores of economies late Thursday, which are set to take effect in a week. A sharp weakening in the labor market could push the Federal Reserve toward slashing interest rates sooner to shore up the economy. On Friday, the two Fed officials who voted this week against the central bank's decision to keep rates unchanged warned that standing pat risks further damaging the economy. Both Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller argued that the inflationary effects of tariffs were temporary. They added in separate statements that the bank should focus on fortifying the economy to avert further weakening in the labor market.
Roya News
a day ago
- Roya News
Taiwan to seek lower tariff after Trump's 'temporary' 20% levy
Taiwan vowed on Friday to seek a lower tariff after Donald Trump imposed a "temporary" 20 percent levy on its shipments to the United States as part of his trade war. The US president's announcement was part of a sweep of measures -- reaching 41 percent -- against dozens of global partners as they scrambled for deals with Washington to avert the painful tolls. The figure is down from the 32 percent toll imposed in his April 2 "Liberation Day", since when Taipei and Washington have held four rounds of face-to-face talks and multiple video conferences to resolve the issue. On Friday Taiwan President Lai Ching-te said on Facebook they were still working to strike an agreement "The US has announced a temporary 20 percent tariff for Taiwan, with the possibility of further reductions should an agreement be reached," he wrote. "The government will continue to strive for a reasonable tariff rate and complete the final stages of the tariff negotiations." While Trump had set Friday as the deadline for agreements to be made, he delayed it until the end of next week. No timeline was given for Taiwan, which could mean the island was caught in the middle of US-China trade negotiations, said Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis. Washington and Beijing held two days of talks this week aimed at reaching a deal to extend a truce in their trade war and prevent the reimposition of sky-high tariffs on August 12. "The conditions on Taiwan might be relevant for China, imagine export controls," Garcia-Herrero told AFP. After US tech giant Nvidia announced it will resume sales of its H20 AI chips to China, Garcia-Herrero said "there could be other stuff that China needs from Taiwan that the US can offer". 'This is the ceiling' Taiwan is a global powerhouse in chip manufacturing, with more than half the world's semiconductors and nearly all of the high-end ones made there. The owner of a Taiwanese machinery exporter to the United States said he was worried that lower tariff rates on Japan and South Korea -- 15 percent -- would advantage his competitors there. He told AFP the recent appreciation in the Taiwan dollar against the greenback had also "put a lot of pressure on us, creating a double whammy". The uncertainty over tariffs was hurting US sales, said textile producer Eddie Wang, with clients "feeling overwhelmed" and reluctant to place orders. Soaring demand for AI-related technology has fuelled Taiwan's trade surplus with the United States -- and put it in Trump's crosshairs. Around 60 percent of Taiwan's exports to the United States are information and communications technology, which includes chips. In a bid to avoid the tariffs, Taipei has pledged to increase investment in the United States, buy ore of its energy and increase its own defence spending. Economist Sun Ming-te said the 20 percent levy was "probably the best outcome Taiwan can achieve with the US under the current conditions."
Jordan Times
2 days ago
- Jordan Times
US Fed's preferred inflation gauge ticks up more than expected
WASHINGTON — The US Federal Reserve's preferred inflation gauge picked up in June, government data showed Thursday, adding to signs that President Donald Trump's tariffs are filtering through to consumers. The personal consumption expenditures (PCE) price index climbed 2.6 per cent in June from a year ago, said the Commerce Department in a report. This was a pick-up from May's 2.4 per cent figure, and above the 2.5 per cent median forecast expected from economists surveyed by Dow Jones Newswires and The Wall Street Journal. Excluding the volatile food and energy sectors, the PCE price index held steady at 2.8 per cent last month, data showed. The figures came a day after the US central bank decided to hold off further interest rate cuts for a fifth consecutive policy meeting, citing somewhat elevated inflation and heightened uncertainty. Trump imposed wide-ranging tariffs on most trading partners after returning to the White House in January, alongside steeper rates on imports of steel, aluminum and autos. These duties, so far, have had a limited effect on inflation but Fed policymakers are waiting to see how they impact consumer prices via data from the summer months — given that they take time to filter through. The latest data could give the Fed further reason to stand pat on interest rates, as officials keep an eye on inflation, as long as the jobs market continues showing resilience. On Friday, Trump is set to implement a fresh set of tariff rates on dozens of economies, a move that analysts warn could further impact costs.
