Jobs report roils Washington
Happy Friday and happy August! It’s eerily cool in Washington this morning. A meteorologist pointed out this may be D.C.’s coolest start to August in 40 years.
In today’s issue:
- Hiring in July stalls, raising alarm bells
- Massive revisions for May, June job stats
- Trump rages against Powell
- White House unveils new tariff rates
- Ghislaine Maxwell transferred to Texas
- Senators duke it out, likely delaying recess
PROGRAMMING NOTE: 12:30 Report will be off next week. We’ll return Aug. 11 — and maybe the Senate will also be gone by then. 🌞🌴
The Hill’s Morning Report and Evening Report will be publishing, so you can get your updates there! 🖱️Subscribe here to get them in your inbox
🚨 IN THE WHITE HOUSE
Screeeeeeech:
The U.S. added only 73,000 jobs in July — well below economists’ expectations — setting off alarm bells about the direction of the U.S. economy.
The Labor Department released its monthly data this morning, which shows a much weaker job market than expected; economists had predicted a job gain of roughly 100,000. The unemployment rate rose slightly from 4.1 percent to 4.2 percent.
And this is where it gets even worse: Job gains for May and June were drastically revised downward, shaving off 258,000 jobs from initial reports.
That means the U.S. only added 19,000 jobs in May, compared to the initial report of 144,000 — and just 14,000 jobs in June, after the initial report of 147,000 (!).
This is a bit startling: The U.S. economy has only added 106,000 jobs over the past three months.
How did Trump take that news, you may be wondering?: Not well. President Trump fumed at Federal Reserve Chair Jerome Powell this morning as a “stubborn MORON” for not lowering interest rates. A little later, he had more to say about Powell, firing off more social media posts about the Fed chair.
Democrats pounced on this news:
- Senate Minority Leader Chuck Schumer (N.Y.) blasted Trump. “It is disturbing to say but the chickens are coming home to roost on Donald Trump’s destructive trade war, and the American people are paying price,” Schumer said on the Senate floor.
- Sen. Chris Murphy (Conn.) called the startling jobs report “unsurprisingly bad.”
- California Gov. Gavin Newsom raged at Trump, arguing he is “crashing our economy” because “we haven’t seen conditions like these since 2020.”
💡 For context: The economy has been fairly steady this year considering the whirlwind of Trump’s ongoing tariff war. But this month’s job report shows a crack in the market.
Stocks plummeted this morning over the jobs report.
It’s Tariff Day to all who celebrate:
President Trump announced new tariff rates for dozens of countries Thursday, potentially upending the global trade system. The new tariffs, one of which is 50 percent (!), will take effect Aug. 7. Here are the new tariff rates:
- Brazil: 50 percent
- Canada: 35 percent (up from 25 percent and are in effect today)
- Laos: 40 percent
- Switzerland: 39 percent
- Iraq: 35 percent
- South Africa: 30 percent
- India: 25 percent
- Algeria: 30 percent
- Moldova: 25 percent
- Nicaragua: 18 percent
Plus: Many other countries will face a 15 percent tariff.
Tariffs Trump imposed Friday: 35 percent tariffs on Canada, up from 25 percent.
What about Mexico?: Trump gave Mexico a 90-day extension.
Let’s not forget: Trump has already made some trade agreements with several countries, setting different tariff rates for them. They include:
- Indonesia: 19 percent
- Thailand: 19 percent
- South Korea: 15 percent
- Japan: 15 percent
- The United Kingdom: 10 percent
➤ TIDBIT — TRUMP IS ADDING AN EXTENSION ON THE WHITE HOUSE:
The White House is beginning construction on a new $200 million ballroom. It will be built adjacent to the White House where the East Wing sits, White House press secretary Karoline Leavitt announced. 📸 Photos of the mock-up
Who’s paying?: Trump and other donors.
➤ BTW, TRUMP SPOKE WITH AXIOS THIS MORNING:
The president told Axios he is working to “get people fed” in Gaza.
Two of Trump’s top diplomats are in Gaza today: Steve Witkoff, Trump’s envoy for peace missions; and Mike Huckabee, the U.S. ambassador to Israel. 📸 Witkoff and Huckabee clad in bulletproof vests
Leavitt said they will brief Trump when they return.
⚖️ BREAKING
Ghislaine Maxwell has been moved:
Jeffrey Epstein’s longtime associate and accomplice Ghislaine Maxwell has been quietly transferred from a federal prison in Florida to one in Texas.
Timing: “The move to Texas comes as Maxwell, who was convicted of sex trafficking and serving a 20-year prison sentence, and her legal team are appealing her case to the Supreme Court in hopes of having her conviction be overturned.”
“Last week, the House Oversight and Government Reform Committee subpoenaed Maxwell, asking for her testimony as the demand from President Trump’s administration to release more documents related to Epstein’s case continues.”
⏱️ ON CAPITOL HILL
Maybe they should roll in some of that accidental High Noon x Celsius collab:
Instead of leaving for their annual August recess today, senators are gearing up for some weekend work
Here’s where things stand: Senate Majority Leader John Thune (R-S.D.) has filed cloture on more than 10 nominees. Thune has not reached a deal with Senate Minority Leader Chuck Schumer (D-N.Y.) to advance those nominees at a faster pace. That sets up at least several Saturday and Sunday votes.
Sen. Markwayne Mullin (R-Okla.) posted a handy list of where nominations stand.
Could this process be sped up?: There have been discussions about a potential rule change that would accelerate the confirmation process while Democrats try to slow-walk its progress. It would be a break from tradition, but Schumer defended his move, arguing “Historically bad nominees deserve historic levels of scrutiny.”
FWIW: Trump wants the Senate to cancel its break, stay in session and confirm his nominees. Several of his key nominations are still in limbo, after all. 🔎 Read Trump’s Thursday night post
^ Yes, but it sure feels like everyone in the Senate is at their wit’s end with one another. I think everyone could use a break…
There is another potential loophole for Republicans: Thune is considering putting the Senate into an extended recess to allow Trump to make recess appointments. This could potentially clear the backlog of Trump’s nominees. But that plan is controversial and comes with some caveats.
COMING UP
The House is out. The Senate is in. President Trump is in Washington. (All times EST)
4 p.m.: Trump leaves for Bedminster, N.J.
Saturday: Vice President Vance turns 41 years old.
🐝 INTERNET BUZZ
🥧 Celebrate: Today is National Raspberry Cream Pie Day. BUT, even more importantly, tomorrow is National Ice Cream Sandwich Day, and Sunday is National Watermelon Day!
👏To quote our queen Lizzo, ‘it’s about damn time’👏: Reese’s and Oreo are teaming up for two new products. Think: A Reese’s Oreo cup and an Oreo Reese’s Cookie. 📸 See for yourself
📗 Want some good book recs for August?: Staffers at The Atlantic pulled together a list of the books they always recommend to people. 📝 See the list
^ It’s not quite in this same category, but I’m personally feeling a little Elin Hilderbrand this month.🦞🫐🍦
👋 AND FINALLY…
Let’s get your weekend started early. Enjoy watching this mother duck prank her ducklings.