Overview

• President Donald Trump demanded the Federal Reserve lower interest rates immediately after ADP reported a gain of just 37,000 private-sector jobs in May, the lowest tally since March 2023.
• Fed Chair Jerome Powell and other officials have stressed rate decisions will depend solely on incoming economic data and plan to keep borrowing costs unchanged at their June 17-18 meeting.
• Trump’s tariffs have disrupted supply chains and led companies to delay hiring and investment, contributing to heightened uncertainty over growth and inflation.
• Economists expect Friday’s nonfarm payrolls report to show 125,000 jobs added in May, with ADP chief economist Nela Richardson highlighting “hiring hesitancy” despite stable wage growth.
• The European Central Bank has reduced its benchmark rate multiple times since June 2024, underlining a widening policy divide between the US and Europe.