Labor Data in Focus; Political Rhetoric Heats Up
The key highlight on today’s US economic calendar is the release of the Job Openings and Labor Turnover Survey (JOLTS). Economists expect job openings in July to register at 7.378 million, slightly below June’s 7.437 million. While JOLTS is viewed as a lagging indicator, since it reflects conditions from two months ago, the data still offers meaningful insight into labor market dynamics and ties closely with the trends highlighted in July’s non-farm payrolls report.
🔎 Additional Data – European PMIs
Before the US session, final PMI figures for major European economies will be released. However, these are not expected to move markets substantially, as the initial “flash” estimates generally provide the market-moving signals and set the narrative in advance.
🗣️ Trump Targets Powell and the Fed
On the political front, former President Donald Trump has escalated his criticism of Federal Reserve Chair Jerome Powell, whom he originally appointed. Trump derisively labeled Powell “Too Late,” accusing him of choking the housing market by keeping interest rates excessively high, which he says is preventing younger Americans from purchasing homes.
Trump argued that inflation is already subdued and insisted that the economy should be supported by an interest rate closer to 1%, claiming such a move would save the US around $1 trillion annually in debt servicing costs. This latest critique expanded beyond Powell, as Trump also blamed the Fed Board of Governors for failing to act decisively on what he views as damaging policies.
📊 Market Reaction
Despite the sharp rhetoric, financial markets remain largely unmoved. Investors continue to downplay the likelihood of a rate cut in July. So far, only Fed Governor Christopher Waller has openly hinted at the possibility of policy easing, while the broader Fed stance remains tilted toward holding rates steady for now.
✅ Summary:
Markets are turning their focus to the JOLTS job openings report, which could offer fresh perspective on labor market strength, while political noise grows louder as Trump renews his attacks on Powell and the Fed. However, traders appear more concerned with the data and policy outlook than with political commentary, keeping attention firmly on economic fundamentals.