Please ensure Javascript is enabled for purposes of website accessibility

U.Va.’s new interim president is former law dean

Summary

The has tapped former U.Va. School of Law Dean Paul G. Mahoney as the university’s interim president. Set to take office on Aug. 11, he is expected to serve until a permanent hire is made to replace former U.Va. leader Jim Ryan, who resigned in late June and left last month.

Mahoney is a David and Mary Harrison Distinguished Professor in the law school and was its dean from 2008 to 2016, according to U.Va.’s announcement Monday. He will succeed acting president Jennifer “J.J.” Wagner Davis, U.Va.’s executive vice president and chief operating officer. She took office following Ryan’s departure, which came under pressure from the Trump administration.

Mahoney inherits a university in turmoil, as the U.S. Department of Justice’s Civil Rights division, led by two U.Va. alumni, launched an investigation this spring into the university’s dismantling of its diversity, equity and inclusion initiatives, which was ordered by a board vote in March. According to letters and news reports, the DOJ accused Ryan of slow-walking the dissolution of DEI offices and programs, as well as simply renaming them and making other cosmetic changes, although critics of the Trump administration claim this was a ploy to drive out Ryan.

Mahoney joined U.Va.’s law school faculty in 1990 and is a member of the Council on Foreign Relations and the American Academy of Arts and Sciences, as well as a former member of the U.S. Securities and Exchange Commission’s Investor Advisory Committee. Before coming to U.Va., Mahoney worked for the New York law firm Sullivan & Cromwell and clerked for Justice Thurgood Marshall of the U.S. Supreme Court. He specializes in securities regulation, corporate finance and contracts, and earned degrees from Yale Law School and MIT.

“I am honored and humbled to serve as the interim president of the University of Virginia and to support the extraordinary students, faculty, staff, alumni and parents who make this institution great,” Mahoney said in a statement. “I thank the board for the trust they have placed in me, and for arriving at this decision in a manner consistent with the university’s core values of shared governance, academic freedom and student self-governance. As a longtime member of this community, I care deeply about U.Va’s education, research and patient-care mission and look forward to continuing that important work together.”

The board of visitors has named a committee to oversee the search for Ryan’s permanent replacement.

A school alum and former professor, Ryan said he was resigning as president to preserve federal funding for research and student financial aid, which he said was at risk if he remained president. Meanwhile, the governor-appointed board of visitors, which has hiring and firing power over the university’s president, has received criticism from state Democratic lawmakers for pushing ahead on its search for Ryan’s successor.

Nine state Senate Democrats sued U.Va.’s rector and the rectors of George Mason University and Virginia Military Institute to prevent them from seating eight appointees after they were rejected by a Senate committee in June. Last week, a judge ordered a temporary injunction against the three universities, although the state is appealing the decision.

House of Delegates Speaker Don Scott said during a news conference last month that U.Va.’s board “probably should put a freeze on any hiring, because we will not support whatever it is that they do,” calling the board “illegitimate,” and adding that the gubernatorial appointees have “been told that they will not be appointed permanently.”

Stocks rebound after jobs report, rate cut hopes rise

  

SUMMARY:  

  • S&P 500 rose 0.8%, Dow added 310 points, Nasdaq up 1.2% 
  • Market recovers from Friday’s steep losses after weak jobs data 
  • blamed for economic slowdown concerns 
  • Investors expect possible Fed rate cut in September 

 

U.S. stocks are rallying and recovering much of their sharp losses from last week, when worries about how President Donald Trump’s tariffs may be punishing the  sent a shudder through Wall Street.

The S&P 500 jumped 1.1% in midday trading to claw back more than two thirds of Friday’s drop. The Industrial Average was up 426 points, or 1%, as of 11:45 a.m. Eastern time, and the Nasdaq composite was 1.5% higher.

Idexx Laboratories helped lead the way and soared 26.6% after the seller of veterinary instruments and other health care products reported a stronger profit for the spring than analysts expected. It also raised its forecast for profit over the full year.

Tyson Foods likewise delivered a bigger-than-expected profit for the latest quarter, and the company behind the Jimmy Dean and Hillshire Farms brands climbed 4.1%.

They helped offset a 2.8% drop for Berkshire Hathaway after Warren Buffett’s company reported a drop in profit for its second quarter from a year earlier. The weakening was due in part to the falling value of its investment in Kraft Heinz.

The pressure is on U.S. companies to deliver bigger profits after their stock prices shot to record after record recently. The jump in stock prices from a low point in April raised criticism that the broad market had become too expensive.

Stocks just sank to their worst week since May not so much on that criticism but on worries that Trump’s tariffs may be hitting the  following a longer wait than some economists had expected. Job growth slowed sharply last month, and the worsened to 4.2%.

Trump reacted to the disappointing jobs numbers by firing the person in charge of compiling them. He also continued his criticism of the Federal Reserve, which could lower interest rates in order to shoot adrenaline into the economy. The Fed has instead been keeping rates on pause this year, in part because lower rates can send higher, and Trump’s tariffs may be set to increase prices for U.S. households.

Friday’s stunningly weak jobs report did raise expectations on Wall Street that the Fed will cut interest rates at its next meeting in September. That caused Treasury yields to slump in the bond market, and they were mixed on Monday.

The yield on the 10-year Treasury eased a bit to 4.20% from 4.23% late Friday.

The two-year yield, which moves more closely with expectations for Fed action, held at 3.69%.

“In our view, if the Fed starts to cut rates at its September meeting, we believe this would be supportive for markets,” according to David Lefkowitz, head of US equities at UBS Global Wealth Management.

Such hopes, combined with profit reports from big U.S. companies that have largely come in better than expected, could help steady a U.S. stock market that may have been due for some turbulence. Before Friday, the S&P had gone more than a month without a daily swing of 1%, either up or down.

This upcoming week may feature fewer fireworks on Wall Street following last week’s jobs report and profit updates from some of the U.S. stock market’s most influential companies. This week’s highlights will likely include earnings reports from The Walt Co., McDonald’s and Caterpillar, along with updates on U.S. business activity.

On Wall Street, Wayfair jumped 10.8% after the retailer of furniture and home decor said accelerating growth helped it make more in profit and revenue during the spring than analysts expected.

rose 1.6% after awarding CEO Elon Musk 96 million shares of restricted stock valued at approximately $29 billion. The move, coming six months after a judge ordered the company to revoke his massive pay package, could remove potential worries that Musk may leave the company.

CommScope soared 75% after reporting a stronger-than-expected quarterly profit and saying that it will sell its connectivity and cable business to Amphenol for $10.5 billion in cash. Amphenol rose 3.1%

They helped offset a drop of 10.2% for On Semiconductor, which only matched analysts’ expectations for profit in the latest quarter. The company, which sells to the auto and industrial industries, said it’s beginning to see “signs of stabilization” across its customers.

slipped 0.5% after workers who build for the troubled aerospace giant went on strike overnight.

In stock markets abroad, indexes rose across much of Europe and Asia.

South Korea’s Kospi rose 0.9%, and France’s CAC 40 climbed 1.1%, while Japan’s Nikkei 225 was an outlier with a drop of 1.2%.

___

This version has been corrected to say that the U.S. stock market had its worst week last week since May, not April.

Boeing faces strike by 3,000 fighter jet workers

  

SUMMARY:  

  • 3,000+ workers strike at three U.S. fighter jet plants 
  • Walkout led by International Association of Machinists union 
  • Second disruption for Boeing in under a year 
  • Strike adds pressure as Boeing works to restore its reputation 

 

A strike by thousands of workers that build for Boeing at three U.S. plants is the second labor disruption for the plane builder in less than a year.

The strike that began just after midnight Monday involving more than 3,000 members of the International Association of Machinists and Aerospace Workers arrives as Boeing is attempts resuscitate its reputation.

Boeing, once a beacon of and the gold standard in the global aircraft industry, has been rocked by fatal crashes, investigations and changes in leadership.

Following is a quick rundown of events that have buffeted the Arlington, Va., company.

___

January 2013: 787s worldwide are grounded nearly three weeks after lithium ion batteries that are part of the planes led to a fire in one plane and smoke in a second.

August 2015: The first 737 Max plane rolls off the production line and within a year are undergoing flight tests.

Oct. 29, 2018: Lion Air Flight 610, a Boeing 737 Max 8, plunges into the Java Sea off the coast of Indonesia minutes after takeoff from Jakarta, killing all 189 people on board. Questions are raised over a new Boeing flight-control system called MCAS that Boeing did not disclose to pilots and airlines. Indonesian investigators say the Flight 610 pilots struggled for control as the automated system pushed the nose of the plane down more than two dozen times.

March 1, 2019: Wall Street remains enamored with Boeing as commercial aircraft orders rocket. Shares of Boeing Co. close at an all-time high of $430.35.

March 10, 2019: Ethiopian Airlines Flight 302, a Boeing 737 Max 8, crashes after takeoff from Addis Ababa, Ethiopia, killing 157 passengers and crew members. Shares of Boeing begin a long, downward slide and have yet to recover.

March 2019: Within days of the second crash, the U.S. Federal Aviation Administration and regulators in nations around the world order the grounding of all 737 Max jets.

Dec. 23, 2019: Boeing ousts CEO Dennis Muilenburg, who was seen as pressuring the FAA to lift the Max grounding order.

Jan. 7, 2021: U.S. Justice Department charges Boeing with fraud but won’t prosecute the company for misleading regulators about the 737 Max if it pays a $2.5 billion settlement.

Jan. 5, 2024: A panel covering an unused emergency exit blows off a 737 Max 9 during an Alaska Airlines flight. Pilots land the plane safely.

Feb. 26, 2024: A panel of outside experts, convened after the two deadly crashes, reports Boeing’s safety culture falls short despite the company’s efforts to fix it.

March 11, 2024: A LATAM Airlines Boeing 787-9 Dreamliner flight between Australia and New Zealand suddenly plunges, injuring 50 people. Boeing tells airlines to inspect switches on pilots’ seats after a published report said an accidental cockpit seat movement likely cause the rapid loss of altitude.

March 25, 2024: Dave Calhoun, who replaced Muilenburg, says he will step down as CEO by year-end as part of a broader shakeup of Boeing leadership.

July 7, 2024: Boeing agrees to plead guilty to conspiracy to defraud the U.S. government for misleading regulators who approved pilot-training standards for the Max.

July 31, 2024: Boeing names Kelly Ortberg as its new chief executive. Ortberg is a trained engineer and was CEO of aerospace supplier Rockwell Collins for eight years. Many see his appointment as an attempt by Boeing to get back to its roots.

Sept 13, 2024: About 33,000 Boeing factory workers walk off the job in a strike that will cripple production at one of the preeminent manufacturers in the U.S. for almost two months. It is the first labor action taken against the company in 16 years.

May 23, 2025: The Justice Department reaches a deal with Boeing that takes criminal prosecution off the table for allegedly misleading regulators about the 737 Max jetliner before the two fatal planes crashes. Boeing agreed to pay or invest more than $1.1 billion, including an additional $445 million for crash victims’ families, removing the risk of a criminal conviction that would have jeopardized the company’s status as a federal contractor.

Tesla grants Musk $29B in stock after court setback

  

SUMMARY:  

  • to award 96M shares worth $29B 
  • Musk must pay $23.34/share, matching 2018 package price 
  • Delaware judge earlier voided Musk’s massive compensation 
  • Court found Tesla board’s pay negotiations were not independent 

 

Tesla is awarding CEO Elon Musk 96 million shares of restricted stock valued at approximately $29 billion, just six months after a judge ordered the company to revoke his massive pay package.

The electric vehicle maker said in a regulatory filing on Monday that Musk must first pay Tesla $23.34 per share of restricted stock that vests, which is equal to the exercise price per share of the 2018 pay package that was awarded to the company’s CEO.

In December Delaware Chancellor Kathaleen St. Jude McCormick reaffirmed her earlier ruling that Tesla must revoke Musk’s multibillion-dollar pay package. She found that Musk engineered the landmark pay package in sham negotiations with directors who were not independent.

At the time McCormick also rejected an equally unprecedented and massive fee request by plaintiff attorneys, who argued that they were entitled to legal fees in the form of Tesla stock valued at more than $5 billion. The judge said the attorneys were entitled to a fee award of $345 million.

The rulings came in a lawsuit filed by a Tesla stockholder who challenged Musk’s 2018 compensation package.

That pay package carried a potential maximum value of about $56 billion, but that sum has fluctuated over the years based on Tesla’s stock price.

Musk appealed the order in March. A month later Tesla said in a regulatory filing that it was creating a special committee to look at Musk’s compensation as CEO.

Wedbush analyst Dan Ives feels Musk’s may alleviate some Tesla shareholder concerns.

“We believe this grant will now keep Musk as CEO of Tesla at least until 2030 and removes an overhang on the stock,” Ives wrote in a client note. “Musk remains Tesla’s big asset and this comp issue has been a constant concern of shareholders once the Delaware soap opera began.”

Tesla shares have plunged 25% this year, largely due to blowback over Musk’s affiliation with . But Tesla also faces intensifying competition from both the big Detroit automakers, and from China.

In its most recent quarter, Tesla reported that quarterly profits plunged from $1.39 billion to $409 million. Revenue also fell and the company fell short of even the lowered expectations on Wall Street.

Under pressure from shareholders last month, Tesla scheduled an annual shareholders meeting for November to comply with Texas state law.

A group of more than 20 Tesla shareholders, which have watched Tesla shares plummet, said in a letter to the company that it needed to at least provide public notice of the annual meeting.

Investors have grown increasingly worried about the trajection of the company after Musk had spent so much time in Washington this year, becoming one of the most prominent officials in the in its bid to slash the size of the U.S. government.

Tesla’s stock rose more than 2% before the market open.

NFL on the verge of selling media assets to ESPN for an equity stake in the network, AP sources say

SUMMARY:

  • to gain control of Network, , and 7 more games
  • NFL to receive equity stake in ESPN under multibillion-dollar deal
  • ESPN plans direct-to-consumer service launch by end of August

The NFL and ESPN are expected to announce an agreement next week under which most of the league’s significant holdings would go to the network.

People familiar with the transaction said the multibillion-dollar deal would give the NFL an equity stake in ESPN.

The people spoke to The Associated Press on condition of anonymity because the deal has not been finalized. It was first reported by The Athletic.

The NFL and ESPN had no comment.

The NFL has been trying to sell its media properties for nearly five years. ESPN and the league have been involved in on-again, off-again talks for the past three years.

The proposed move comes as ESPN is expected to soon launch its direct-to-consumer service, possibly before the end of August. The service would give cord cutters access to all of ESPN’s programs and networks for $29.99 per month. Most cable, satellite and viewers who have streaming services will receive the service for free as part of their subscription.

ESPN would get access to the popular RedZone channel, as well as and an additional seven regular-season games (six international and a Saturday afternoon late-season contest).

A couple of weeks ago, ESPN announced that NFL Network host ‘s three-hour program would air on ESPN Radio as well as stream on + and ESPN+. “The Rich Eisen Show” is not affiliated with NFL Network.

ESPN has carried NFL games since 1987 and “” since 2006. Under the current TV contract, it will have the 2027 and 2031 Super Bowls for the first time.

NFL Network started in November 2003 and was the second major pro league to have its own network. NBA TV started in 1999, MLB Network in 2009 and NHL Network in the United States in 2007.

Virginia Beach distributor to close, laying off 104 workers

Atlantic Dominion Distributors, the -based subsidiary of a 150-year-old parent company, is set to close in September. As a result, 104 people will be out of work, according to the state.

According to a news release from , which is owned by Old Dominion Tobacco Co., it has sold its inventory assets to , based in Goldsboro, North Carolina.

Atlantic Dominion informed the state of the closing of its wholesale and vending distribution operations in Virginia Beach and Williamsburg in a July 30 letter to the Virginia Workforce Network’s Rapid Response program. According to the Virginia Works Worker Adjustment and Retraining Notification (WARN) page, the will occur by Sept. 26.

Financial terms of the transaction were not disclosed, and the acquisition, which includes Atlantic Dominion’s operations in Virginia Beach and Hope Mills, North Carolina, is expected to close at the end of August, according to the companies’ announcement.

In Atlantic Dominion’s letter to the state, 98 employees of the Virginia Beach wholesale and vending divisions will be laid off, as well as six employees at three Williamsburg cigarette outlets. Eleven other employees in North Carolina also will be laid off.

Southco Distributing said Monday that the facility in Virginia Beach will not remain open, but employees will be offered a job if they are willing to relocate, and sales positions will be offered where applicable.

Old Dominion Tobacco Co., Atlantic Dominion’s parent company, will continue to run its other businesses, including Hoffman Beverage, which distributes Anheuser-Busch products and other beverages; S&K Sales, a distributor to military commissaries and exchanges worldwide; and a real estate investment division.

Old Dominion Tobacco was established in 1875 as a cigar maker in Norfolk by founder Leroy Davis, whose descendant, Robin Davis Ray, is president of Atlantic Dominion Distributors. According to its website, Atlantic Dominion provides more than 10,000 food, drink and tobacco products to convenience stores and grocers, as well as vending machines and other outlets in Virginia, North Carolina and South Carolina.

 

Wall Street falls the most since May after employers slash hiring and tariffs roll out

SUMMARY:

  • drops 1.6%; Nasdaq down 2.2%; Dow slips 1.2% in worst day for Wall Street since May
  • U.S. added just 73,000 in July; May and June job gains revised down by 258,000
  • Treasury yields tumble as investors bet on Fed rate cut in September

The had its worst day since May after the government reported a sharp slowdown in hiring and imposed sweeping tariffs on imports from a number of U.S. trading partners. The S&P 500 fell 1.6% Friday, and the Industrial Average dropped 1.2%. The Nasdaq composite lost 2.2%. The surprisingly weak hiring numbers led investors to step up their expectations for an interest rate cut in September and sent Treasury yields sharply lower in the bond market. The new set of tariffs are set to go into effect Aug. 7.

Worries on Wall Street about a weakening economy were heavily reinforced by the latest report on job growth in the U.S. Employers added just 73,000 jobs in July. That is sharply lower than economists expected. The Department also reported that revisions shaved a stunning 258,000 jobs off May and June payrolls.

Markets are also reacting to the latest tariff news. President Donald Trump announced tariff rates on dozens of countries and pushed back the scheduled effective date to Aug. 7, adding more uncertainty to the global trade picture.

The surprisingly weak hiring numbers led investors to step up their expectations for an interest rate cut in September. The market’s odds of a quarter-point cut by the rose to around 85% from just under 40% a day earlier, according to data from CME FedWatch.

The yield on the 10-year Treasury fell to 4.22% from 4.39% just before the hiring report was released. That’s a big move for the bond market. The yield on the two-year Treasury, which more closely tracks expectations for Fed actions, plunged to 3.71% from 3.94% just prior to the report’s release.

The Fed has held rates steady since December. A cut in rates would give the job market and overall economy a boost, but it could also risk fueling , which is hovering stubbornly above the central bank’s 2% target.

An update on Thursday for the Fed’s preferred measure of inflation showed that prices ticked higher in June, rising to 2.6% from 2.4% in May. The Fed has remained cautious about cutting because of worries that tariffs will add more fuel to inflation and weigh down economic growth.

The central bank, though, also counts “maximum employment” as one of its two mandates along with keeping prices stable. Issues with either of those goals could prompt a shift in policy.

The Fed held rates steady again at its most recent meeting this week. Fed Chair Jerome Powell has been pressured by Trump to cut the benchmark rate, though that decision isn’t his to make alone, but belongs to the 12 members of the Federal Open Market Committee.

“What had looked like a Teflon showed some scratches this morning, as tariffs continue to work their way through the economy,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. “A Fed that still appeared hesitant to lower rates may see a clearer path to a September cut, especially if data over the next month confirms the trend.”

Businesses, investors and the Fed are all operating under a cloud of uncertainty from Trump’s tariff policy. The latest moves give 66 countries, the European Union, Taiwan and the Falkland Islands another seven days, instead of taking effect on Friday, as Trump stated earlier.

Companies have been warning investors that the policy, with some tariffs already in effect while others change or get extended, has made it difficult to make forecasts. Walmart, Procter & Gamble and many others have warned about import taxes raising costs, eating into profits and raising prices for consumers.

Internet retail giant Amazon fell 8.2%, despite reporting encouraging profit and sales for its most recent quarter. Technology behemoth Apple fell 1.7% after also beating Wall Street’s profit and revenue forecasts. Both companies face tougher operating conditions because of tariffs, with Apple forecasting a $1.1 billion hit from the fees in the current quarter.

Exxon Mobil fell 1.9% after reporting that profit dropped to the lowest level in four years and sales fell as oil prices slumped as OPEC+ ramped up production.

Stocks fell across the world. Germany’s DAX fell 2.7% and France’s CAC 40 fell 2.9%. South Korea’s Kospi tumbled 3.9%

Trump calls on the Federal Reserve board to take full control of the central bank from Powell

SUMMARY:

  • Trump demands Fed board override for not cutting interest rates.
  • Trump-nominated Waller and Bowman dissent, favoring cuts.
  • Supreme Court ruling limits Trump’s ability to remove Powell over policy.

WASHINGTON (AP) — on Friday called for the Federal Reserve’s board of governors to usurp the power of Fed Chair Jerome Powell, criticizing the head of the U.S. central bank for not cutting short-term interest rates.

Posting on his platform, Trump called Powell “stubborn.” The Fed chair has been subjected to vicious verbal attacks by the Republican president over several months.

The Fed has the responsibility of stabilizing prices and maximizing employment. Powell has held its benchmark rate for overnight loans constant this year, saying that Fed officials needed to see what impact Trump’s massive tariffs had on .

If Powell doesn’t “substantially” lower rates, Trump posted, “THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”

Two of the seven Fed governors, Christopher Waller and Michelle Bowman, issued statements Friday saying they see the tariffs as having a one-time impact on prices and the job market as most likely softening. As a result, the two dissented at the Fed meeting on Wednesday and pushed for slight relative to what Trump was seeking.

Even though Trump, who nominated Waller and Bowman, has claimed the is booming, he welcomed their arguments and what he called their strong dissents.

Friday’s jobs report showed a rapidly decelerating , as just 73,000 were added in July and downward revisions brought down the June and May totals to 14,000 and 19,000, respectively.

Trump sees the rate cuts as leading to stronger growth and lower debt servicing costs for the and homebuyers. The president argues there is virtually no inflation, even though the Fed’s preferred measure is running at an annual rate of 2.6%, slightly higher than the Fed’s 2% target.

Trump has called for slashing the Fed’s benchmark rate by 3 percentage points, bringing it down dramatically from its current average of 4.33%. The risk is that a rate cut that large could cause more money to come into the economy than can be absorbed, possibly causing inflation to accelerate.

The Supreme Court suggested in a May ruling that Trump could not remove Powell for policy disagreements. This led the White House to investigate whether the Fed chair could be fired for cause because of the cost overruns in the Fed’s $2.5 billion renovation projects.

Powell’s term as chair ends in May 2026, at which point Trump can put his Senate-confirmed pick in the seat.

___

This story has been corrected to reflect that 14,000 jobs were created in June and 19,000 in May, not 19,000 in June and 14,000 in May.

US employers slash hiring as Trump advances a punishing trade agenda

SUMMARY:

  • U.S. employers added just 73,000 jobs last month, below forecasts.
  • May and June payrolls were revised downward by 258,000 jobs.
  • Unemployment rose to 4.2% as more Americans left the labor force.

WASHINGTON (AP) — U.S. hiring is slowing sharply as ‘s erratic and radical trade policies paralyze businesses and raise doubts about the outlook for the world’s largest economy.

U.S. employers added just 73,000 jobs last month, the Labor Department reported Friday, well short of the 115,000 expected.

Worse, revisions shaved a stunning 258,000 jobs off May and June payrolls. And the unemployment rate ticked higher to 4.2% as Americans dropped out of the labor force and the ranks of the unemployed rose by 221,000.

“A notable deterioration in U.S. conditions appears to be underway,” said Scott Anderson, chief U.S. economist at BMO Capital Markets. ”We have been forecasting this since the tariff and trade war erupted this spring and more restrictive immigration restrictions were put in place. Overall, this report highlights the risk of a harder landing for the labor market.”

Economists have been warning that the rift with every U.S. trading partner will begin to appear this summer and the Friday jobs report appeared to sound the bell.

“We’re finally in the eye of the hurricane,” said Daniel Zhao, chief economist at . “After months of warning signs, the July jobs report confirms that the slowdown isn’t just approaching—it’s here.”

U.S. markets recoiled at the jobs report and the Dow tumbled more than 600 points Friday.

But President Donald Trump responded to the weak report by calling for the firing of Erika McEntarfer, the director of the Labor Department’s Bureau of Labor Statistics, which compiles the jobs numbers. “I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY,” Trump said on . “She will be replaced with someone much more competent and qualified.”

Revelations in the new data raise questions about the health of the job market and the economy as Trump pushes forward an unorthodox overhaul of American trade policy.

Trump has discarded decades of U.S. efforts to lower trade barriers globally, instead, imposing hefty import taxes — tariffs — on products from almost every country on earth. Trump believes the levies will bring manufacturing back to America and raise money to pay for the massive tax cuts he signed into law July 4.

Mainstream economists warned that the cost of the tariffs will be passed along to Americans, both businesses and households.

That has begun.

Walmart, Procter & Gamble, Ford, Best Buy, Adidas, Nike, Mattel, Shein, Temu, Stanley Black & Decker, have all hiked prices due to U.S. tariffs. Economists at Goldman Sachs estimate that overseas exporters have absorbed just one-fifth of the rising costs from tariffs, while Americans and U.S. businesses have picked up the lion’s share of the tab.

Trump has sowed uncertainty in the erratic way he’s rolled the tariffs out — announcing, then suspending them, then coming up with new ones. Overnight, Trump signed an executive order that set new tariffs on a wide swath of U.S. trading partners to that go into effect on Aug. 7, and that comes after a flurry of unexpected tariff-related actions this week.

“There was a clear, significant, immediate, tariff effect on the labor market and employment growth essentially stalled, as we were dealing with so much uncertainty about the outlook for the economy and for tariffs,” said Blerina Uruci, chief U.S. economist for the brokerage T. Rowe Price.

Still, Uruci said the data suggests we could be past the worst, as hiring actually did pick up a bit in July from May and June’s depressed levels.

“I’m not overly pessimistic on the based on this morning’s data,” she said, though she does think that hiring will remain muted in the coming months as the number of available workers remains limited due to reduced immigration and an aging population.

“Because of immigration policy, labor supply growth has nearly ground to a halt,” said Guy Berger, senior fellow at the Burning Glass Institute, which studies employment trends. “So we’re going to have very weak employment growth. And we look like southern Europe or Japan.”

Still, with fewer workers available, the economy doesn’t need to generate many jobs to soak up the unemployed. That could keep the unemployment rate from climbing much, Berger added.

Trump has sold the tariffs hikes as a way to boost American manufacturing, but factories cut 11,000 jobs last month after shedding 15,000 in June and 11,000 in May. The , where employment has been targeted by the , lost 12,000 jobs. Jobs in administration and support fell by nearly 20,000.

Healthcare companies added 55,400 jobs last month – accounting for 76% of the jobs added in July and offering another sign that recent job gains have been narrowly concentrated.

The department originally reported that state and local governments had added 64,000 education jobs in June. The revisions Friday slashed those jobs to less than 10,000.

Those revisions also revealed that the U.S. economy has generated an average of just 85,000 jobs a month this year, barely half last year’s average of 168,000 and well below an average 400,000 from 2021-2023 as the economy rebounded from COVID-19 lockups.

The weak jobs data makes it more likely that Trump will get one thing that he most fervently desires: A cut in short-term by the Federal Reserve, which often — though not always — can lead to lower rates for mortgages, car loans, and credit cards.

Fed Chair and other Fed officials have repeatedly pointed to a healthy job market as a reason that they could take time to evaluate how Trump’s tariffs were affecting and the broader economy. Now that assessment has been undercut and will put more pressure on the Fed to reduce borrowing costs.

Wall Street investors sharply raised their expectations for a rate cut at the Fed’s next meeting in September after the report was released.

On Wednesday, the Fed left its key rate unchanged for fifth consecutive meeting and Powell signaled little urgency to reduce rates anytime soon. He said the “labor market is solid” with “historically low unemployment.” But he also acknowledged there is a “downside risk” to employment stemming from the slow pace of hiring that was evident even before Friday’s weaker numbers.

The current situation is a sharp reversal from the hiring boom of just three years ago when desperate employers were handing out signing bonuses and introducing perks such as Fridays off, fertility benefits and even pet insurance to recruit and keep workers.

The rate of people quitting their jobs — a sign they’re confident they can land something better — has fallen from the record heights of 2021 and 2022 and is now weaker than before the pandemic.

Drees Homes, a homebuilder based outside Cincinnati in Fort Mitchell, Kentucky, has hired about 50 people over the past year, bringing its workforce to around 950. Pamela Rader, Drees’ vice president for human resources, it’s “gotten a little bit easier” to find workers.

A couple of years ago, Rader said jobseekers were focused on getting more pay. Now, she said, they emphasize stable employment, a better work-life balance, and prospects for advancement.

Federal Reserve Governor Kugler steps down, giving Trump slot to fill

WASHINGTON (AP) — governor Adriana Kugler announced that she will step down next Friday, opening up a spot on the central bank’s powerful board that will be able to fill.

Kugler, who did not participate in the Fed’s policy meeting earlier this week, would have completed her term in January. Instead, she will retire Aug. 8. She did not provide a reason for stepping down in her resignation letter.

Trump has stepped up his criticism of the Fed since chair said Wednesday that the central bank would keep its short-term interest rate unchanged. Powell also said the Fed could take months to evaluate the impact of tariffs on the before deciding to cut rates, as Trump has demanded.