ADP's June jobs report indicated a loss of 33,000 jobs in the private sector, the lowest since March 2023, diverging from economists' forecasts. This contraction signals a potential economic slowdown and has led some economists to expect a weaker report in Thursday’s government nonfarm payrolls release, which is predicted to show a 110,000 job increase. The data may prompt the Federal Reserve to consider interest rate cuts, a move desired by President Donald Trump, who has criticized the Fed’s current monetary policy affecting debt payments.
The private sector lost 33,000 jobs in June, according to a Wednesday report by payroll provider ADP, marking the lowest reading since March 2023.
The ADP report increased the odds of a downside surprise in Thursday's nonfarm payroll release, with expectations of a weaker-than-consensus report.
The Federal Reserve's decision not to cut interest rates yet this year due to market uncertainty and stronger-than-expected labor data has been a pain point for President Donald Trump.
Trump has expressed that the federal government is stuck paying massive interest-rate payments on its debt because the Fed hasn't lowered rates.
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