On The Money: Strong June as economy adds 213K jobs | China blames Trump for 'biggest trade war' in history | Consumer bureau deputy to resign, end legal fight with Trump

On The Money: Strong June as economy adds 213K jobs | China blames Trump for 'biggest trade war' in history | Consumer bureau deputy to resign, end legal fight with Trump
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Happy Friday and welcome back to On The Money, where we're wondering if it's going to be a long, long time before North Korea gives up its nukes. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

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Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @VickofTheHill, @NJagoda and @NivElis.

 

THE BIG DEAL -- Another strong jobs report: The U.S. economy added a solid 213,000 jobs in June, a stronger number than expected and a sign of the labor market's steady strength even as concerns mount about President TrumpDonald John TrumpBrennan fires new shot at Trump: ‘He’s drunk on power’ Trump aides discussed using security clearance revocations to distract from negative stories: report Trump tried to dissuade Melania from 'Be Best' anti-bullying campaign: report MORE's trade policy.

The unemployment rate ticked up slightly to 4 percent from 3.8 percent as more workers jumped into the labor market, the Labor Department reported on Friday.

The economy has added jobs for 92 straight months, beginning in October 2010 under President Obama, the longest streak on record.

Job gains also rose 37,000 more than previously reported in April and May. 

"If any doubts lingered that slack in the labor force -- the number of Americans on the sidelines waiting for a good opportunity -- has been underestimated, they were quashed with this report," said Robert Frick, corporate economist with Navy Federal Credit Union.

Unemployment rose as 601,000 people entered the labor market and not all of them found a job. 

"This slack could be one reason why wage growth disappointed again," Frick said. 

Job gains have been consistently strong under Trump, who inherited a strong labor market from former President Obama. But Trump's decision to levy tariffs on close U.S. allies has led to massive retaliatory tariffs on U.S. exports, which trade experts argue will cost jobs and damage the healthy economy. The Hill's Vicki Needham breaks the report down here.

 

Reactions:

  • "The tight labor market is leading businesses to raise pay to retain their current workers and attract new ones, and wage growth will strengthen through the rest of this year and into 2018." -- PNC Chief Economist Gus Faucher
  • "There is no longer a 'threat' of a global trade war, the battle has begun." -- Hun Quach, vice president of international trade for the Retail Industry Leaders Association.
  • "These labor shortages will only intensify across all industries and company sizes." -- Mark Zandi, chief economist at Moody's Analytics.

 

LEADING THE DAY

China accuses Trump of launching 'the biggest trade war in economic history': China accused President Trump on Friday of starting "the biggest trade war in economic history" by slapping billions of dollars' worth of tariffs on Chinese goods.

The 25 percent tariffs, costing China roughly $34 billion, kicked in on Friday in Beijing, CNN reported.

Chinese officials announced that retaliatory tariffs on U.S. goods would immediately go into effect on American exports like soybeans, seafood, SUVs and crude oil.

China accused Trump of using tariffs as "typical trade bullying."

"China is forced to strike back to safeguard core national interests and the interests of its people," the Commerce Ministry said in a statement to CNN on Friday. Morgan Gstalter has more here.

 

Consumer bureau deputy chief to resign, ceding legal challenge to Trump: Leandra English, deputy director of the Consumer Financial Protection Bureau (CFPB), said Friday that she will resign from the agency and end her legal bid to claim control of the regulator.

English said in a statement that she will leave the CFPB "early next week," citing President Trump's nomination of a permanent director for the bureau. She will also end her lawsuit against Trump and acting CFPB Director Mick MulvaneyJohn (Mick) Michael MulvaneyPentagon, GOP breathe sign of relief after Trump cancels parade Middle-class Americans can't afford another trillion financial crash Treasury retweets Trump, possibly violating campaign law MORE, whom the president appointed to lead the bureau in November, said her attorney, Deepak Gupta.

Gupta said he and English would file paperwork Monday to end their lawsuit against Trump and Mulvaney. The U.S. Court of Appeals for the District of Columbia heard arguments for the case in April.

English's resignation will end her unsuccessful claim to be the bureau's chief that began with the departure of former CFPB Director Richard CordrayRichard Adams CordrayPoll: Majority of likely voters support consumer bureau mission Election Countdown: Takeaways from too-close-to-call Ohio special election | Trump endorsements cement power but come with risks | GOP leader's race now rated as 'toss-up' | Record numbers of women nominated | Latino candidates get prominent role in 2020 Michigan race shows two parties on different trajectories MORE on Nov. 24. Cordray appointed English, his former chief of staff, to be the CFPB's deputy director moments before he resigned from the agency to run for Ohio governor. I explain the saga here.

 

ON TAP NEXT WEEK

 Monday

  • R Street Institute hosts an event entitled "Music IP: Are Music Companies Holding Our Heritage Hostage?" 1:15 p.m.

 

Tuesday

  • U.S Chamber of Commerce hosts "AI Summit: Investing in Innovation and Tomorrow's Workforce," 9:30 a.m.

 

Wednesday

  • The American Enterprise Institute and Brookings Institution host an event entitled "Rethinking globalization: How do we rebuild support?," 10 a.m.
  • Senate Finance Committee: Hearing on paid family leave, 10 a.m
  • House Foreign Affairs Committee: Hearing entitled "China's Predatory Trade and Investment Strategy," 2 p.m.
  • U.S. Chamber of Commerce hosts "Brexit: A Conversation with EU Chief Negotiator Michel Barnier," 2 p.m.

 

Thursday

  • Brookings Institution hosts an event entitled "Leveraging America's manufacturing resurgence," 9 a.m.
  • Senate Banking Committee: Hearing on credit bureaus and the Fair Credit Reporting Act, 10 a.m.
  • House Financial Services Committee: Treasury Secretary Steven Mnuchin testifies on the state of the international financial system, 10 a.m.
  • House Financial Services Committee: Hearing entitled "Countering the Financial Networks of Weapons Proliferation," 2 p.m.
  • American Enterprise Institute hosts an event entitled "Should Fannie Mae and Freddie Mac be shrinking or expanding their activities?" 2 p.m.

 

Friday

  • Brookings Institute hosts an event entitled "Re-examining trade with Africa under the Continental Free Trade Agreement," 2:00 p.m.

 

NEXT WEEK'S NEWS, NOW

 

GOOD TO KNOW

  • Lobbying groups representing major technology companies voiced their displeasure Friday with the Trump administration's imposition of $34 billion in tariffs on Chinese goods.
  • Hundreds of thousands of Americans could be denied new or renewed passports under a 2015 law requiring the IRS and State Department to deny passports to Americans with more than $51,000 in overdue tax debt.
  • Amazon.com has done a poor job of enforcing its terms of service to keep white supremacist products and content off its site, according to a report published Friday.
  • The fallout from President Donald Trump's tariffs and China's countertariffs--which formally went into effect on Friday--will have the greatest impact on the U.S. counties that voted Trump into office, according to The Wall Street Journal.

 

ODDS AND ENDS

  • Fox Business Network host Dagen McDowell said on Friday that conservatives would be "shouting to the high heavens" if former President Obama had implemented massive tariffs akin to those imposed by Trump.