Vietnam's $3 Billion US Ag Deal; Job Creation Crucial for Economic Growth
Key Takeaways
- Vietnam signs $3B deal for US agricultural products before trade negotiations.
- Economy needs 100,000 jobs monthly to maintain growth in working-age population.
- Healthcare (+62,000) and leisure/hospitality (+48,000) lead job gains; manufacturing and retail decline.
- Average hourly earnings up 0.4%; wages rose 3.9% in the last 12 months.
- Markets expect the Fed to hold rates, then resume easing in September.
Top Stories
Vietnam signs $3B deal for US agricultural products.
On 2025-06-07, it was published that Vietnamese businesses have signed 20 agreements worth about $3 billion to import more US agricultural products ahead of the third round of official negotiations set to take place next week.
Economy needs 100,000 jobs monthly to maintain growth.
On 2025-06-06, it was reported that the economy needs to create roughly 100,000 jobs per month to keep up with growth in the working-age population.
Healthcare leads job gains; manufacturing, retail decline.
On 2025-06-06, employment gains were concentrated in healthcare (62,000 jobs) and leisure/hospitality (48,000 jobs), while construction payrolls rose 4,000. Manufacturing shed 8,000 jobs and retailers also experienced job losses.
Average hourly earnings up 0.4%; wages rose 3.9%.
On 2025-06-06, it was reported that average hourly earnings increased 0.4% after gaining 0.2% in April. In the 12 months through May, wages rose 3.9%, matching April's advance.
Markets expect Fed to hold rates, resume easing in September.
On 2025-06-06, it was reported that financial markets expect the Fed will leave its benchmark overnight interest rate unchanged in the 4.25%-4.50% range at a policy meeting later this month, before resuming its policy easing in September.
Central Bank Actions
Trump criticizes Powell, urges full percentage point rate cut.
On 2025-06-06, President Trump criticized Fed Chair Jerome H. Powell, calling him a “disaster” and urging him to lower interest rates by a percentage point. This followed a solid jobs report for May that reinforced the Federal Reserve’s stance to take its time before restarting interest rate cuts.
Fed holds rates steady amid economic uncertainty.
On 2025-06-06, it was reported that officials have held interest rates steady since January 2025 amid extreme uncertainty about the economic outlook as a result of Mr. Trump’s policies. The central bank has signaled it will need to see clear signs that the labor market is weakening before lowering rates again.
Trump to name Fed chair soon; Warsh 'highly thought of'.
On 2025-06-06, President Trump told reporters that his pick for the next chair of the Fed was coming soon and that he had a pretty good idea of whom he would select for the role, which Jerome H. Powell will vacate next May. He also mentioned that Kevin Warsh, a former Fed governor, is 'very highly thought of'.
Next Fed opening: January 2025, Adriana Kugler's term.
On 2025-06-06, it was noted that the next Fed opening that Mr. Trump will be able to fill is in January 2025, when Adriana Kugler’s term as a governor is set to expire. He recently had the opportunity to appoint a new vice chair for supervision, Michelle Bowman, who was confirmed by the Senate on Thursday.
Cleveland Fed President: No immediate need to lower rates.
On 2025-06-06, Beth Hammack, president of the Federal Reserve Bank of Cleveland, had conversations with business owners this week and said she had heard nothing to suggest that the Fed needed to immediately lower borrowing costs.
Fed's Bowman aims to overhaul bank oversight.
On 2025-06-06, it was reported that Fed's Bowman lays out ambitious agenda to overhaul and ease bank oversight.
Financial Health
Federal government payrolls decreased by 22,000 in May.
On 2025-06-06, it was reported that federal government payrolls decreased by 22,000 and are down 59,000 since January, amid a White House campaign to reduce the government's footprint.
Manufacturing, retail jobs decline; temporary help tumbles.
On 2025-06-06, manufacturing shed 8,000 jobs, mostly in machinery production, and retailers also experienced job losses. Temporary help employment, a harbinger for future hiring, tumbled by 20,200 positions.
Industries reporting employment gains: 10-month low.
On 2025-06-06, the share of industries reporting employment gains dropped to a 10-month low of 50.0% from 51.8% in April.
South Florida: 'Epicenter of housing weakness'.
On 2025-06-06, it was published that South Florida is emerging as the ‘epicenter of housing weakness’.
Global Trade
Japan may seal US trade deal before G7 Summit.
On 2025-06-06, Japan’s top negotiator Ryosei Akazawa said in Washington DC that Japan won’t necessarily wait for the Group of Seven Summit set to take place in Canada next week to seal a trade deal with the US if the two sides can agree earlier.
Market Overview
Stocks rise, bond yields nudge higher after jobs report.
On 2025-06-06, the immediate market reaction to a jobs report was positive, with stocks rising and bond yields nudging higher.
S&P 500 hits 6000; caution advised.
The S&P 500 finally hit 6000, suggesting caution to buyers due to resistance and overbought conditions.
Cramer: US stock market underperforming European exchanges.
On 2025-06-06, Jim Cramer criticized the U.S. stock market for significantly underperforming compared to European exchanges.
Policy Watch
Concerns raised over USDA report integrity after delay.
On 2025-06-06, analysts voiced concerns about the integrity of U.S. Department of Agriculture reports after the agency delayed a quarterly agricultural trade report and excluded findings that point to tariffs as a reason for a forecasted increase in the agricultural trade deficit. The report was published on 2025-06-06.