‘Limitless power': Conservative legal experts warn Donald Trump is breaking the law
Some of the most prominent legal experts in the United States, including several conservatives, have issued a fresh warning that the Trump administration is blatantly breaking the law.
The Free Press, a publication founded by former New York Times and Wall Street Journal columnist Bari Weiss, surveyed seven such experts from across the political spectrum. The verdict was unanimous.
'The consensus is striking, and perhaps surprising, given the ideological diversity of these contributors,' The Free Press wrote.
'All agreed that the President's legal tactics reflect a dangerous willingness to ignore statutory and constitutional constraints, and that he must be reined in quickly.'
Today President Trump drove home the point by confirming his desire to deport people from the United States without due process – something his administration has already been doing, most strikingly by sending migrants to a notoriously brutal jail in El Salvador.
The American government claims these people are violent gang members, though most of them have no criminal record, and none of them were given a chance to contest the allegation before being deported. The US is paying El Salvador to hold them.
It's unclear whether they will ever be released from El Salvador's Cecot prison, otherwise known as the 'Terrorism Confinement Centre'.
'I hope we get co-operation from the courts, because you know, we have thousands of people that are ready to go out,' Mr Trump told reporters in the Oval Office today.
'And you cannot have a trial for all of these people. The system was not meant, that not – we don't think there is anything that says – we are getting them out. And a judge cannot say, 'No, you have to have a trial.' The trial is going to take two years.
'No, we are going to have a very dangerous country if we are not allowed to do what we are entitled to do.'
To justify deporting people by uncontestable fiat, Mr Trump has invoked the Alien Enemies Act, a law from the late 1700s designed to be used during wartime. It allows the President to remove nationals of a foreign country with whom the United States is at war; in this case he is claiming the presence of foreign gangs in the US constitutes an invasion.
The law has been used thrice before, during the War of 1812, World War I and World War II.
As previously mentioned, The Free Press invited opinions from seven different legal experts. I'm going to start with those more naturally aligned with Mr Trump's policies. First up, Ed Whelan, who served in the Bush administration and, before that, clerked for conservative Supreme Court Justice Antonin Scalia.
'The Department of Justice is pursuing the White House's political interests. So the de facto attorney-general, to whom nominal Attorney-General Pam Bondi and other top DOJ officials answer, appears to be White House deputy chief of staff Stephen Miller, a non-lawyer whose sharp political skills include an inclination to utter brazen falsehoods,' Mr Whelan said.
'The White House has also marginalised DOJ's Office of Legal Counsel. That office has long had the responsibility to review a president's proposed executive orders and proclamations to ensure they are lawful. The Office of Legal Counsel has a strong institutional bias in favour of executive power, but its unwillingness to rubber-stamp Trump's decrees has rendered it unwelcome. The unsurprising result is that many of Trump's executive orders and proclamations have serious legal vulnerabilities.
'As someone who supports many of Trump's policy goals, I fear that the administration has no coherent legal strategy. Its temperamental disposition to see law as politics will not help it win legal battles. And its growing but wildly overblown perception of the judiciary as its enemy portends a stark conflict that will leave us all worse off.'
Andrew McCarthy, a Fox News legal analyst and former prosecutor, brought up the case of Kilmar Abrego Garcia, whom the Trump administration has conceded it deported wrongly due to an 'administrative error'.
It has, however, resisted court orders requiring it to bring him back to the United States, saying he is now in Salvadoran custody and therefore beyond American control.
Mr McCarthy highlighted a recent ruling by federal judge J. Harvie Wilkinson, who was appointed to his position by conservative president Ronald Reagan in the 1980s.
'The government is asserting a right to stash away residents of this country in foreign prisons without the semblance of due process that is the foundation of our constitutional order,' Judge Wilkinson wrote.
'Further, it claims in essence that because it has rid itself of custody that there is nothing that can be done.
'This should be shocking not only to judges, but to the intuitive sense of liberty that Americans far removed from courthouses still hold dear.'
Mr McCarthy said the Trump administration is, on its face, acting 'lawlessly', and the real question here is why it's doing so.
'Is there a strategy? The somehow less disturbing possibility is that, having been the victim of ruinous lawfare – the leveraging of the government's law enforcement and intelligence apparatus against a political enemy – Trump is merely exacting retribution, as promised during the campaign,' he said.
'More perilous: having cowed the conservative, constitutionalist elements of the Republican Party and thus nullified Congress's formidable arsenal to check executive misconduct, the President seeks to eviscerate any remaining constraints on his power by illustrating that the courts and American institutions are impotent, too.'
Ilya Somin, a law professor at George Mason University, is a constitutional originalist, placing him in the conservative camp as well.
His argument to The Free Press was that Mr Trump's actions amount to 'major steps towards authoritarianism'.
'The second Trump administration is trying to undermine the Constitution on so many fronts that it's hard to keep track,' he said.
'But three are particularly dangerous: the usurpation of Congress's spending power; unconstitutional measures against immigration justified by bogus claims that the US is under 'invasion'; and assertions of virtually limitless presidential power to impose tariffs.
'The administration's claims that courts are powerless to order the return of illegally deported and imprisoned people menace not only immigrants, but American citizens.
'Under Trump's logic, they, too, could be deported and imprisoned abroad, and courts could not order their return.
'In sum, Trump has tried to impose unconstitutional, unaccountable, one-man rule over the federal budget, immigration policy, and foreign trade, thereby threatening civil liberties, the autonomy of states and private institutions, the US economy, and more.
'If not stopped, he will have taken major steps toward authoritarianism.'
Our last conservative legal scholar is Jonathan Adler, a professor at the Case Western Reserve University School of Law.
'No one thought that Donald Trump was particularly concerned with constitutional niceties,' Prof Adler noted.
'But some are still shocked at the aggressiveness with which the second Trump administration has challenged the rule of law, asserting authority denied by the Constitution, disregarding legal constraints enacted by Congress, and thumbing its nose at judicial orders. And doing so with the active co-operation of so many lawyers in the administration who have taken oaths to uphold the law and Constitution.
'The administration's declaration of unilateral authority to define the contours of American citizenship and deport individuals without affording them the barest degree of due process is a betrayal of constitutional values.
'Its insistence that the president can simply decree changes in federal law and disregard legislatively enacted constraints on agency authority are assaults on the rule of law.'
Prof Adler argued that 'even where the Trump administration pursues laudable goals', it has tended to act with 'reckless disregard' for the law.
'As much as America needs a presidential administration willing to push back against the progressive excesses of the 21st century, it needs one capable of pursuing such ends without adopting the illiberal means and methods of its predecessors,' he said.
'Indeed, abandoning such principles, and inviting inevitable defeat in court, will compromise the goals the administration seeks to achieve.'
Other experts surveyed by The Free Press were of a more progressive bent, and were therefore, if anything, harsher.
Lawrence Lessig, for example, said the 'closest analogue' to the US government's current behaviour was 'the Mafia'.
'Never has a president behaved like this. It's not even close,' he argued.
'Sure, during actual wars, presidents have walked up to the line of executive authority. Maybe FDR and Lincoln crossed those lines. Legal historians are on both sides of those debates. But this president threatens with power he knows he does not have, even if he believes he will get away with threatening it.
'And in the face of this threat, the truly tragic reality is that the key institution designed to resist this threat, Congress, is incapable of mustering any resistance. The courts will do what they can, but courts were never built to address this kind of threat.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Advertiser
40 minutes ago
- The Advertiser
Trump not interested in Musk talks after bill feud
US President Donald Trump is not interested in talking with his former ally Elon Musk, amid a bitter feud over the president's sweeping tax-cut bill, a White House official said, adding that no phone call between the two men is planned for the day. A separate White House official had said earlier that Trump and Musk were going to talk to each other on Friday. "I'm not even thinking about Elon. He's got a problem, the poor guy's got a problem," Trump told CNN on Friday morning. Trump, the world's most powerful leader, and Musk, the world's richest man, battled openly on Thursday in an extraordinary day of hostilities - largely over social media - that marked a stark end to a close alliance. Shares in Musk's Tesla rose 4.5 per cent when markets opened on Friday. In Thursday's session, the stock dived 14 per cent and lost about $150 billion in value, the largest single-day decline in the electric vehicle maker's history. Musk bankrolled a large part of Trump's presidential campaign and was then brought to the White House to head up a controversial effort to downsize the federal workforce and slash spending. The falling-out began brewing days ago when Musk, who left his role as head of the Department of Government Efficiency a week ago, denounced Trump's tax-cut and spending bill. The feud is complicating efforts to pass the bill, which is the president's main demand of the Republican-controlled Congress. Musk has denounced the package, which contains most of Trump's domestic priorities, as a "disgusting abomination" that would add too much to the nation's $36.2 trillion in debt. The package narrowly passed the House of Representatives last month and is now before the Senate, where Republicans say they will make further changes. Nonpartisan analysts say it would add $2.4 trillion in debt over 10 years. House Speaker Mike Johnson said he has been in touch with Musk. "I don't argue with him about how to build rockets and I wish he wouldn't argue with me about how to craft legislation and pass it," he said on CNBC. Trump had initially stayed quiet while Musk campaigned to torpedo the bill, but broke his silence on Thursday, telling reporters he was "very disappointed" in Musk. "Look, Elon and I had a great relationship. I don't know if we will anymore," he said. The pair then traded barbs on their social media platforms: Trump's Truth Social and Musk's X. "Without me, Trump would have lost the election," wrote Musk, who spent nearly $300 million backing Trump and other Republicans in last year's election. Musk also asserted that Trump's signature import tariffs would push the US into a recession and responded "Yes" to a post on X saying Trump should be impeached. That would be highly unlikely given Trump's Republicans hold majorities in both chambers of Congress. Trump, for his part, suggested he would terminate government contracts with Musk's businesses, which include rocket company SpaceX and its satellite unit Starlink. Musk, whose space business plays a critical role in the US government's space program, responded that he would begin decommissioning SpaceX's Dragon spacecraft, which is the only US spacecraft capable of sending astronauts to the International Space Station. He backed off the threat later in the day. Musk had already said he planned to curtail his political spending, and on Tuesday he called for "all politicians who betrayed the American people" to be fired next year. His involvement with the Trump administration has provoked widespread protests at Tesla sites, driving down sales while investors fretted that Musk's attention was too divided. with AP US President Donald Trump is not interested in talking with his former ally Elon Musk, amid a bitter feud over the president's sweeping tax-cut bill, a White House official said, adding that no phone call between the two men is planned for the day. A separate White House official had said earlier that Trump and Musk were going to talk to each other on Friday. "I'm not even thinking about Elon. He's got a problem, the poor guy's got a problem," Trump told CNN on Friday morning. Trump, the world's most powerful leader, and Musk, the world's richest man, battled openly on Thursday in an extraordinary day of hostilities - largely over social media - that marked a stark end to a close alliance. Shares in Musk's Tesla rose 4.5 per cent when markets opened on Friday. In Thursday's session, the stock dived 14 per cent and lost about $150 billion in value, the largest single-day decline in the electric vehicle maker's history. Musk bankrolled a large part of Trump's presidential campaign and was then brought to the White House to head up a controversial effort to downsize the federal workforce and slash spending. The falling-out began brewing days ago when Musk, who left his role as head of the Department of Government Efficiency a week ago, denounced Trump's tax-cut and spending bill. The feud is complicating efforts to pass the bill, which is the president's main demand of the Republican-controlled Congress. Musk has denounced the package, which contains most of Trump's domestic priorities, as a "disgusting abomination" that would add too much to the nation's $36.2 trillion in debt. The package narrowly passed the House of Representatives last month and is now before the Senate, where Republicans say they will make further changes. Nonpartisan analysts say it would add $2.4 trillion in debt over 10 years. House Speaker Mike Johnson said he has been in touch with Musk. "I don't argue with him about how to build rockets and I wish he wouldn't argue with me about how to craft legislation and pass it," he said on CNBC. Trump had initially stayed quiet while Musk campaigned to torpedo the bill, but broke his silence on Thursday, telling reporters he was "very disappointed" in Musk. "Look, Elon and I had a great relationship. I don't know if we will anymore," he said. The pair then traded barbs on their social media platforms: Trump's Truth Social and Musk's X. "Without me, Trump would have lost the election," wrote Musk, who spent nearly $300 million backing Trump and other Republicans in last year's election. Musk also asserted that Trump's signature import tariffs would push the US into a recession and responded "Yes" to a post on X saying Trump should be impeached. That would be highly unlikely given Trump's Republicans hold majorities in both chambers of Congress. Trump, for his part, suggested he would terminate government contracts with Musk's businesses, which include rocket company SpaceX and its satellite unit Starlink. Musk, whose space business plays a critical role in the US government's space program, responded that he would begin decommissioning SpaceX's Dragon spacecraft, which is the only US spacecraft capable of sending astronauts to the International Space Station. He backed off the threat later in the day. Musk had already said he planned to curtail his political spending, and on Tuesday he called for "all politicians who betrayed the American people" to be fired next year. His involvement with the Trump administration has provoked widespread protests at Tesla sites, driving down sales while investors fretted that Musk's attention was too divided. with AP US President Donald Trump is not interested in talking with his former ally Elon Musk, amid a bitter feud over the president's sweeping tax-cut bill, a White House official said, adding that no phone call between the two men is planned for the day. A separate White House official had said earlier that Trump and Musk were going to talk to each other on Friday. "I'm not even thinking about Elon. He's got a problem, the poor guy's got a problem," Trump told CNN on Friday morning. Trump, the world's most powerful leader, and Musk, the world's richest man, battled openly on Thursday in an extraordinary day of hostilities - largely over social media - that marked a stark end to a close alliance. Shares in Musk's Tesla rose 4.5 per cent when markets opened on Friday. In Thursday's session, the stock dived 14 per cent and lost about $150 billion in value, the largest single-day decline in the electric vehicle maker's history. Musk bankrolled a large part of Trump's presidential campaign and was then brought to the White House to head up a controversial effort to downsize the federal workforce and slash spending. The falling-out began brewing days ago when Musk, who left his role as head of the Department of Government Efficiency a week ago, denounced Trump's tax-cut and spending bill. The feud is complicating efforts to pass the bill, which is the president's main demand of the Republican-controlled Congress. Musk has denounced the package, which contains most of Trump's domestic priorities, as a "disgusting abomination" that would add too much to the nation's $36.2 trillion in debt. The package narrowly passed the House of Representatives last month and is now before the Senate, where Republicans say they will make further changes. Nonpartisan analysts say it would add $2.4 trillion in debt over 10 years. House Speaker Mike Johnson said he has been in touch with Musk. "I don't argue with him about how to build rockets and I wish he wouldn't argue with me about how to craft legislation and pass it," he said on CNBC. Trump had initially stayed quiet while Musk campaigned to torpedo the bill, but broke his silence on Thursday, telling reporters he was "very disappointed" in Musk. "Look, Elon and I had a great relationship. I don't know if we will anymore," he said. The pair then traded barbs on their social media platforms: Trump's Truth Social and Musk's X. "Without me, Trump would have lost the election," wrote Musk, who spent nearly $300 million backing Trump and other Republicans in last year's election. Musk also asserted that Trump's signature import tariffs would push the US into a recession and responded "Yes" to a post on X saying Trump should be impeached. That would be highly unlikely given Trump's Republicans hold majorities in both chambers of Congress. Trump, for his part, suggested he would terminate government contracts with Musk's businesses, which include rocket company SpaceX and its satellite unit Starlink. Musk, whose space business plays a critical role in the US government's space program, responded that he would begin decommissioning SpaceX's Dragon spacecraft, which is the only US spacecraft capable of sending astronauts to the International Space Station. He backed off the threat later in the day. Musk had already said he planned to curtail his political spending, and on Tuesday he called for "all politicians who betrayed the American people" to be fired next year. His involvement with the Trump administration has provoked widespread protests at Tesla sites, driving down sales while investors fretted that Musk's attention was too divided. with AP US President Donald Trump is not interested in talking with his former ally Elon Musk, amid a bitter feud over the president's sweeping tax-cut bill, a White House official said, adding that no phone call between the two men is planned for the day. A separate White House official had said earlier that Trump and Musk were going to talk to each other on Friday. "I'm not even thinking about Elon. He's got a problem, the poor guy's got a problem," Trump told CNN on Friday morning. Trump, the world's most powerful leader, and Musk, the world's richest man, battled openly on Thursday in an extraordinary day of hostilities - largely over social media - that marked a stark end to a close alliance. Shares in Musk's Tesla rose 4.5 per cent when markets opened on Friday. In Thursday's session, the stock dived 14 per cent and lost about $150 billion in value, the largest single-day decline in the electric vehicle maker's history. Musk bankrolled a large part of Trump's presidential campaign and was then brought to the White House to head up a controversial effort to downsize the federal workforce and slash spending. The falling-out began brewing days ago when Musk, who left his role as head of the Department of Government Efficiency a week ago, denounced Trump's tax-cut and spending bill. The feud is complicating efforts to pass the bill, which is the president's main demand of the Republican-controlled Congress. Musk has denounced the package, which contains most of Trump's domestic priorities, as a "disgusting abomination" that would add too much to the nation's $36.2 trillion in debt. The package narrowly passed the House of Representatives last month and is now before the Senate, where Republicans say they will make further changes. Nonpartisan analysts say it would add $2.4 trillion in debt over 10 years. House Speaker Mike Johnson said he has been in touch with Musk. "I don't argue with him about how to build rockets and I wish he wouldn't argue with me about how to craft legislation and pass it," he said on CNBC. Trump had initially stayed quiet while Musk campaigned to torpedo the bill, but broke his silence on Thursday, telling reporters he was "very disappointed" in Musk. "Look, Elon and I had a great relationship. I don't know if we will anymore," he said. The pair then traded barbs on their social media platforms: Trump's Truth Social and Musk's X. "Without me, Trump would have lost the election," wrote Musk, who spent nearly $300 million backing Trump and other Republicans in last year's election. Musk also asserted that Trump's signature import tariffs would push the US into a recession and responded "Yes" to a post on X saying Trump should be impeached. That would be highly unlikely given Trump's Republicans hold majorities in both chambers of Congress. Trump, for his part, suggested he would terminate government contracts with Musk's businesses, which include rocket company SpaceX and its satellite unit Starlink. Musk, whose space business plays a critical role in the US government's space program, responded that he would begin decommissioning SpaceX's Dragon spacecraft, which is the only US spacecraft capable of sending astronauts to the International Space Station. He backed off the threat later in the day. Musk had already said he planned to curtail his political spending, and on Tuesday he called for "all politicians who betrayed the American people" to be fired next year. His involvement with the Trump administration has provoked widespread protests at Tesla sites, driving down sales while investors fretted that Musk's attention was too divided. with AP


The Advertiser
41 minutes ago
- The Advertiser
US job growth cools in May amid tariff woes
US job growth slowed in May amid uncertainty about the Trump administration's import tariffs, but solid wage growth should keep the economic expansion on track and potentially allow the Federal Reserve to delay resuming its interest rate cuts. The ebbing labour market momentum reported by the Labor Department on Friday was underscored by sharp downward revisions that showed 95,000 fewer jobs were added in March and April than previously estimated over the two month period. The unemployment rate held steady at 4.2 per cent for the third consecutive month because 625,000 people dropped out of the labour force, suggesting a lack of confidence in the jobs market and offsetting a decline in household employment. Recent surveys have pointed to consumers becoming less optimistic about their prospects of finding a job in the event of being laid off. Economists say President Donald Trump's flip-flopping on import tariffs has hampered businesses' ability to plan ahead and hire more workers. Opposition to Trump's tax-cut and spending bill from conservative Republicans in the US Senate and tech billionaire Elon Musk has added another layer of uncertainty for companies. "The Labour market continues to slow steadily, but the sky is not falling," said Olu Sonola, head of US economic research at Fitch Ratings. "Given the backdrop of trade policy uncertainties, the Fed will be relieved with this report. The tariff landscape is still very uncertain." Nonfarm payrolls increased by 139,000 jobs last month after a downwardly revised rise of 147,000 in April, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had expected the survey of establishments to show 130,000 jobs added after a previously reported rise of 177,000 in April. The payrolls count for March was slashed by 65,000 to 120,000. The economy needs to create roughly 100,000 jobs per month to keep up with growth in the working-age population. That number could drop as Trump has revoked the temporary legal status of hundreds of thousands of migrants as part of his administration's immigration crackdown. Much of the job growth this year reflects worker hoarding by businesses, anchoring the labour market and economy through higher wages. Average hourly earnings increased 0.4 per cent after gaining 0.2 per cent in April. In the 12 months through May, wages rose 3.9 per cent, matching April's advance. US stocks opened higher. The dollar gained against a basket of currencies. US Treasury yields rose. Employers' reluctance to lay off workers could keep the US central bank on the sidelines until the end of the year. Financial markets expect the Fed will leave its benchmark overnight interest rate unchanged in the 4.25-4.50 per cent range at a policy meeting later this month, before resuming its policy easing in September. US job growth slowed in May amid uncertainty about the Trump administration's import tariffs, but solid wage growth should keep the economic expansion on track and potentially allow the Federal Reserve to delay resuming its interest rate cuts. The ebbing labour market momentum reported by the Labor Department on Friday was underscored by sharp downward revisions that showed 95,000 fewer jobs were added in March and April than previously estimated over the two month period. The unemployment rate held steady at 4.2 per cent for the third consecutive month because 625,000 people dropped out of the labour force, suggesting a lack of confidence in the jobs market and offsetting a decline in household employment. Recent surveys have pointed to consumers becoming less optimistic about their prospects of finding a job in the event of being laid off. Economists say President Donald Trump's flip-flopping on import tariffs has hampered businesses' ability to plan ahead and hire more workers. Opposition to Trump's tax-cut and spending bill from conservative Republicans in the US Senate and tech billionaire Elon Musk has added another layer of uncertainty for companies. "The Labour market continues to slow steadily, but the sky is not falling," said Olu Sonola, head of US economic research at Fitch Ratings. "Given the backdrop of trade policy uncertainties, the Fed will be relieved with this report. The tariff landscape is still very uncertain." Nonfarm payrolls increased by 139,000 jobs last month after a downwardly revised rise of 147,000 in April, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had expected the survey of establishments to show 130,000 jobs added after a previously reported rise of 177,000 in April. The payrolls count for March was slashed by 65,000 to 120,000. The economy needs to create roughly 100,000 jobs per month to keep up with growth in the working-age population. That number could drop as Trump has revoked the temporary legal status of hundreds of thousands of migrants as part of his administration's immigration crackdown. Much of the job growth this year reflects worker hoarding by businesses, anchoring the labour market and economy through higher wages. Average hourly earnings increased 0.4 per cent after gaining 0.2 per cent in April. In the 12 months through May, wages rose 3.9 per cent, matching April's advance. US stocks opened higher. The dollar gained against a basket of currencies. US Treasury yields rose. Employers' reluctance to lay off workers could keep the US central bank on the sidelines until the end of the year. Financial markets expect the Fed will leave its benchmark overnight interest rate unchanged in the 4.25-4.50 per cent range at a policy meeting later this month, before resuming its policy easing in September. US job growth slowed in May amid uncertainty about the Trump administration's import tariffs, but solid wage growth should keep the economic expansion on track and potentially allow the Federal Reserve to delay resuming its interest rate cuts. The ebbing labour market momentum reported by the Labor Department on Friday was underscored by sharp downward revisions that showed 95,000 fewer jobs were added in March and April than previously estimated over the two month period. The unemployment rate held steady at 4.2 per cent for the third consecutive month because 625,000 people dropped out of the labour force, suggesting a lack of confidence in the jobs market and offsetting a decline in household employment. Recent surveys have pointed to consumers becoming less optimistic about their prospects of finding a job in the event of being laid off. Economists say President Donald Trump's flip-flopping on import tariffs has hampered businesses' ability to plan ahead and hire more workers. Opposition to Trump's tax-cut and spending bill from conservative Republicans in the US Senate and tech billionaire Elon Musk has added another layer of uncertainty for companies. "The Labour market continues to slow steadily, but the sky is not falling," said Olu Sonola, head of US economic research at Fitch Ratings. "Given the backdrop of trade policy uncertainties, the Fed will be relieved with this report. The tariff landscape is still very uncertain." Nonfarm payrolls increased by 139,000 jobs last month after a downwardly revised rise of 147,000 in April, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had expected the survey of establishments to show 130,000 jobs added after a previously reported rise of 177,000 in April. The payrolls count for March was slashed by 65,000 to 120,000. The economy needs to create roughly 100,000 jobs per month to keep up with growth in the working-age population. That number could drop as Trump has revoked the temporary legal status of hundreds of thousands of migrants as part of his administration's immigration crackdown. Much of the job growth this year reflects worker hoarding by businesses, anchoring the labour market and economy through higher wages. Average hourly earnings increased 0.4 per cent after gaining 0.2 per cent in April. In the 12 months through May, wages rose 3.9 per cent, matching April's advance. US stocks opened higher. The dollar gained against a basket of currencies. US Treasury yields rose. Employers' reluctance to lay off workers could keep the US central bank on the sidelines until the end of the year. Financial markets expect the Fed will leave its benchmark overnight interest rate unchanged in the 4.25-4.50 per cent range at a policy meeting later this month, before resuming its policy easing in September. US job growth slowed in May amid uncertainty about the Trump administration's import tariffs, but solid wage growth should keep the economic expansion on track and potentially allow the Federal Reserve to delay resuming its interest rate cuts. The ebbing labour market momentum reported by the Labor Department on Friday was underscored by sharp downward revisions that showed 95,000 fewer jobs were added in March and April than previously estimated over the two month period. The unemployment rate held steady at 4.2 per cent for the third consecutive month because 625,000 people dropped out of the labour force, suggesting a lack of confidence in the jobs market and offsetting a decline in household employment. Recent surveys have pointed to consumers becoming less optimistic about their prospects of finding a job in the event of being laid off. Economists say President Donald Trump's flip-flopping on import tariffs has hampered businesses' ability to plan ahead and hire more workers. Opposition to Trump's tax-cut and spending bill from conservative Republicans in the US Senate and tech billionaire Elon Musk has added another layer of uncertainty for companies. "The Labour market continues to slow steadily, but the sky is not falling," said Olu Sonola, head of US economic research at Fitch Ratings. "Given the backdrop of trade policy uncertainties, the Fed will be relieved with this report. The tariff landscape is still very uncertain." Nonfarm payrolls increased by 139,000 jobs last month after a downwardly revised rise of 147,000 in April, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had expected the survey of establishments to show 130,000 jobs added after a previously reported rise of 177,000 in April. The payrolls count for March was slashed by 65,000 to 120,000. The economy needs to create roughly 100,000 jobs per month to keep up with growth in the working-age population. That number could drop as Trump has revoked the temporary legal status of hundreds of thousands of migrants as part of his administration's immigration crackdown. Much of the job growth this year reflects worker hoarding by businesses, anchoring the labour market and economy through higher wages. Average hourly earnings increased 0.4 per cent after gaining 0.2 per cent in April. In the 12 months through May, wages rose 3.9 per cent, matching April's advance. US stocks opened higher. The dollar gained against a basket of currencies. US Treasury yields rose. Employers' reluctance to lay off workers could keep the US central bank on the sidelines until the end of the year. Financial markets expect the Fed will leave its benchmark overnight interest rate unchanged in the 4.25-4.50 per cent range at a policy meeting later this month, before resuming its policy easing in September.

News.com.au
2 hours ago
- News.com.au
What's next for Tesla after the Trump-Musk public spat?
Tesla shares plunged yesterday amid Elon Musk's feud with President Trump. MarketWatch's James Rogers and Cantor Fitzgerald's Andres Sheppard look at fundamentals, such as Tesla's earnings report and the coming robotaxi launch, to gauge what's next.