White House Considers ‘Pocket Rescissions' to Sidestep Congress: What to Know
The strategy occurs when a president submits a rescission proposal under the Impoundment Control Act—requesting Congress to cancel previously appropriated funds—within 45 days of the end of the fiscal year, Sept. 30. The funds are withheld during the 45-day congressional review period, and if Congress doesn't act before the fiscal year ends, the funds expire.
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Yahoo
19 minutes ago
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How major US stock indexes fared Friday, 8/1/2025
The stock market had its worst day since May after the government reported a sharp slowdown in hiring and President Donald Trump imposed sweeping tariffs on imports from a number of U.S. trading partners. The S&P 500 fell 1.6% Friday, and the Dow Jones 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. On Friday: The S&P 500 fell 101.38 points, or 1.6%, to 6,238.01. The Dow Jones Industrial Average fell 542.40 points, or 1.2%, to 43,588.58. The Nasdaq composite fell 472.32 points, or 2.2%, to 20,650.13. The Russell 2000 index of smaller companies fell 44.87 points, or 2%, to 2,166.78. For the week: The S&P 500 is down 150.63 points, or 2.4%. The Dow is down 1,313.34 points, or 2.9%. The Nasdaq is down 458.18 points, or 2.2%. The Russell 2000 is down 94.29 points, or 4.2%. For the year: The S&P 500 is up 356.38 points, or 6.1%. The Dow is up 1,044.36 points, or 2.5%. The Nasdaq is up 1,339.34 points, or 6.9%. The Russell 2000 is down 63.38 points, or 2.8%.
Yahoo
19 minutes ago
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Investors react to Kugler's resignation, firing of BLS commissioner
(Reuters) -The Federal Reserve said on Friday that Governor Adriana Kugler was resigning from the central bank effective Aug. 8. Separately, U.S President Donald Trump ordered that the commissioner of the U.S. Bureau of Labor Statistics, Erika L. McEntarfer, be fired after data showed employment growth was weaker than expected last month. COMMENTS: PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK "Obviously, (Adriana's resignation) is a negative, and that'll probably continue to pressure the dollar. That's not a good sign, when someone resigns, unless there is a personal reason, there is always a question mark as to why. So the unknown factor of that usually adds to uncertainties. "Of course, you had a major revision in the employment numbers so it's a fact that Trump fired the Commissioner of Labour Statistics, basically questioning the accuracy of these numbers because of that huge revision that we had. So, anytime something like this happens, it always raises uncertainties." CHRISTOPHER HODGE, CHIEF US ECONOMIST, NATIXIS ,NEW YORK: 'The interim BLS Chief looks to be an accomplished technocrat, which is a great sign. Going forward, should the fidelity of the data be compromised, this would place the markets and Fed in a very precarious position. I would expect the Fed to rely more and more on the anecdotes it collects from the Beige Book. Her (Adriana Kugler's ) term was set to expire in January, so no great change in policy. I have not seen an indication that she is resigning in protest, but the timing is very curious' JODY CALEMINE, DIRECTOR OF ADVOCACY, AFL-CIO, WASHINGTON, D.C. 'Today was probably the last reliable jobs report we will ever see. This isn't good for anybody looking to see what's going on with the economy, not just for workers but for the business community in general.' 'This morning's jobs report was showing what was the first indicators of probably a coming recession…it's clear he fired her (McEntarfer) for issuing a jobs report he just didn't like.' On Kugler: 'The Fed board should be independent of the president, that's for sure. He (Trump) is wielding increasingly authoritarian control over different agencies, and clearly he wants to wield that control over the Fed. The markets have kept that impulse in check so far. He's increasingly out of control.' JUAN PEREZ, SENIOR DIRECTOR OF TRADING, MONEX USA, WASHINGTON: "The way (the market) is going to interpret (the departures) is in a very dollar-negative way." "No matter what the economic picture in the United States, the one thing that holds the U.S. dollar strong in the eyes of the world is the authority and the independence of the Federal Reserve. Whenever anything comes to potentially put that into compromise then that's when the U.S. dollar spirals down." PETER TUZ, PRESIDENT OF CHASE INVESTMENT COUNSEL IN CHARLOTTESVILLE, VIRGINIA "There will be an opening for the Trump administration to fill. It's likely he will choose somebody whose views on interest rates match his own. Then Treasury Secretary Bessent wants to have a list of possible replacements for the Fed Chair by the end of the year so, Trump is getting a bigger chance to appoint people whose views match his own." Regarding Trump's order to fire Erika L. McEntarfe, he said: "I don't like to see a bureaucrat fired just because the data that gets presented doesn't support the administration's policies. We have a president who believes the economy is strong and that interest rates should be cut . I have read nothing that suggests she was not doing a good job or conscientious. It's upsetting. We're killing the messenger here instead of trying to see what the data really says and go from there. I see no evidence that the numbers were ever manipulated. It wouldn't be big news today if it happened a lot. Certainly, it's unusual." (Compiled by the Global Finance & Markets Breaking News team) Sign in to access your portfolio
Los Angeles Times
20 minutes ago
- Los Angeles Times
Wall Street falls the most since May after employers slash hiring and tariffs roll out
The U.S. stock market had its worst day since May on Friday after the government reported a sharp slowdown in hiring and President Donald Trump imposed sweeping tariffs on imports from a number of U.S. trading partners. The S&P 500 fell 1.6%, its biggest decline since May 21 and its fourth straight loss. The index also posted a 2.4% loss for the week, marking a sharp shift from last week's record-setting streak of gains. The Dow Jones Industrial Average fell 1.2%, while the Nasdaq composite fell 2.2%. 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 Labor Department also reported that revisions shaved a stunning 258,000 jobs off May and June payrolls. Markets also reacted 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 market has been felled by a one-two punch of additional tariffs, as well as the weaker-than-expected employment data -— not only for this month, but for the downward revisions to the prior months,' said Sam Stovall, chief investment strategist at CFRA. Trump's decision to order the immediate firing of the head of the government agency that produces the monthly jobs figures will only fuel the market's uncertainty, Stovall added. 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 Federal Reserve rose to around 87% from just under 40% a day earlier, according to data from CME FedWatch. The question now: Will the Fed's policymakers consider a half-point cut next month, or even a quarter-point cut sometime before their next committee meeting, Stovall said. The yield on the 10-year Treasury fell to 4.21% 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 3.68% 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 inflation, 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 interest rates 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 labor market 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 8.3%, despite reporting encouraging profit and sales for its most recent quarter. Technology behemoth Apple fell 2.5% 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 1.8% after reporting that profit dropped to the lowest level in four years and sales fell as oil prices slumped as OPEC+ ramped up production. All told, the S&P 500 fell 101.38 points to 6,238.01. The Dow dropped 542.40 points to 43,588.58, and the Nasdaq gave up 472.32 points to finish at 20,650.13. 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% Troise and Veiga write for the Associated Press.
