We’re waiting on the Payroll Report:
Non-Farm Payrolls are expected to come in at 125,000, down just a bit from 139,000 last month but ADP Employment DROPPED 33,000 yesterday and showed a lot of wage pressure (inflationary, keeps the Fed on hold) and we’ll be watching those indicators closely. Corporate America has made a lot of threats that AI will replace everybody and that’s kept wages down for existing workers as a threat but NEW hires are getting 6.6% more than last year and existing workers are NOT being laid off.
In fact, the JOLTS (Job Openings) report jumped by 374,000 (5%) to 7.77 MILLION unfilled jobs because the President is an idiot and chasing QUALIFIED WORKERS out of the country does NOT solve our labor shortage. To be fair, Trump’s master plan is to replace those low-income workers with new workers who can afford his $5M green card. Sure, those guys are heading straight for McDonalds to get jobs…
It’s 8am now and we’ll be digging deep into this labor report when it comes out in 30 minutes. We also get the Global Service PMI at 9:45 and that’s been expanding (53.7) but May Factory Orders (10 am) will be more interesting as they were DOWN 3.7% in April. The problem is Trump fired most of the people who do these data reports and, for the last 30 days, we have not been able to verify Government Data the way we used to – it’s just BS on BS at this point…
Trump is winning the War on Truth with his DoubleSpeak outlet Truth Social but his ex-bestie Elon, who turned Twitter so MAGA that the liberals moved to BlueSky is now changing his tune and we’ll see how yesterday’s algo-tweek changes the brain-washing cycle at X. I’ve already seen a huge change in my data feed – suddenly Anti-Trump, Anti-MAGA, Pro-Democracy items are showing up again – MADNESS!
Unfortunately, it means I’m now being subjected to LOGIC and that’s a bit much for me early in the morning after a multi-yea-long diet of crap. This was on the top of my Twitter feed this morning and it contains both math and logic and political commentary – it’s like my head is going to explode…
It doesn’t matter though because President Trump had the Al Capone meeting with the GOP holdouts on his Big, Beautiful Bill last night and it has been very funny to hear Republican Congressmen on TV this morning, trying to explain how they suddenly aren’t concerned about the Debt or the shredding of the Constitution (just in time for America’s 249th birthday!) that has been baked into this bill (they have already made it clear they don’t care about it’s treatment of the lower classes). Warren already gave a “fair and balanced” review of the Bill on Monday – so we’ll leave it at that.
8:30 Update: 147,000 jobs AND last month was revised UP 16,000 and Unemployment is steady at 4.1% with Average Hourly Earnings up 0.2% (as expected – 3.7% for the year). Interestingly, as the US Government cuts another 7,000 jobs in June, LOCAL Governments ADDED 73,000 jobs to pick up the slack – that doesn’t sound very efficient to me… As I have been saying for months – just because you decide not to repair the highways doesn’t mean the highways no longer need repairing – Trump is simply taking jobs that USED to be done by the Federal Government and kicking it down to the local Governments – BUT KEEPING THE TAX MONEY SO HE CAN GIVE BREAKS TO HIS BUDDIES!
So now the Local Governments have to provide the once-Federal Services and, unlike Trump, they have to balance their budgets and so they RAISE TAXES to make up for the money Trump stole. THAT is what is happening and this is just the beginning of the fiscal year for Local Governments – next year will be a budget disaster and there will be a HELL of a reckoning!
Oh and that Unemployment Rate of 4.1% that is, as Eddie Murphy used to say, the WHITE Unemployment Rate – the Black Unemployment rate is 6.8% with Long-Term Unemployment up 190,000 (13.4%) for the month – to 1,600,000. 256,000 gave up and quit the labor force (Discouraged Workers).
The increase in Long-Term Unemployment and Discouraged Workers, coupled with concentrated job growth in just a few sectors, gives Powell more reasons to consider lowering rates. These are signs of a slowing labor market. An aggressive “higher for longer” stance on interest rates could exacerbate these emerging weaknesses and risk a more significant downturn in the future. Still, July action seems premature – there’s not enough evidence here to cut at the July 30th meeting.
Nonetheless, Trump is calling for Powell’s head and FHFA Director Bill Pulte (just appointed by Trump on March 14th) is showing his loyalty by calling for a Congressional Investigation into Jerome Powell for impeachment on Trump’ed up charges:
Federal Reserve Chair Jerome “Jay” Powell is facing impeachment calls and demands for a congressional investigation, primarily led by Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), and echoed by some Republican lawmakers. The controversy centers on allegations that Powell lied to Congress about the scope and cost of the Federal Reserve’s $2.5 billion headquarters renovation in Washington, D.C. 12345.
Key Charges and Allegations
1. Deceptive Congressional Testimony
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Powell is accused of providing false or misleading statements to the Senate Banking Committee regarding the renovation project.
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Under questioning, Powell dismissed reports of extravagant features—such as a VIP dining room, new marble, special elevators, water features, and rooftop gardens—claiming these were not part of the renovation5.
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However, official planning documents contradict his testimony, referencing restoration of private dining rooms, extension of the governors’ private elevator, vegetated roof terraces, new marble, and water features5.
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Senator Cynthia Lummis and others allege Powell made “numerous factually incorrect statements” and was “evidently unprepared for his testimony and should feel ashamed”5.
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The water features are part of the new paved plaza entrance at the northwest corner of the FRB-East building addition (20th Street, NW entrance)1. -
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The plaza includes two linear water features that run parallel to the entrance area1. -
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These are modern, linear installations—not traditional fountains, but elongated, shallow channels or pools integrated into the hardscape of the entry plaza.
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The plaza is designed for universal accessibility, with sloped walks and ramps adjacent to the water features. The water features are incorporated alongside new stairs and ramps, enhancing the visual appeal of the main approach to the building1. -
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The water features are part of a broader landscape rehabilitation, including evergreen hedges, bioretention areas, and improved circulation and security elements1. -
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While the documents do not specify exact materials, such features typically use stone or concrete edging, subtle lighting, and shallow water depths to create a reflective, tranquil effect.
2. Alleged Malfeasance and Political Bias
3. Broader Context: Rate Policy Pressure
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The impeachment push is also seen as part of a broader campaign by the Trump administration to pressure Powell to lower interest rates, which he has resisted despite repeated public and private demands13.
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Pulte and other administration figures have openly called for Powell’s resignation, blaming him for high mortgage rates and a weak housing market34.
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What’s Next?
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Congressional Investigation: Pulte and several lawmakers are demanding Congress investigate whether Powell’s testimony constitutes perjury or “high crimes and misdemeanors” under the standard for impeachment/removal of a federal official234.
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Potential Consequences: If Congress finds Powell lied under oath or engaged in misconduct, it could initiate impeachment proceedings or otherwise seek his removal “for cause”—a rare and politically charged step for a Fed Chair.
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Summary Table
| Charge | Details/Allegations |
|---|---|
| Lying to Congress | Denied existence of lavish HQ features contradicted by plans |
| Malfeasance | Alleged deception, mismanagement, political bias |
| Misuse of Public Funds | $2.5B renovation, 30% over budget, “luxury upgrades” |
| Political Context | Pressure to cut rates, housing market criticism |
Bottom Line
The impeachment charges against Jay Powell stem from accusations of deceptive testimony about the Fed’s headquarters renovation, alleged mismanagement, and broader political efforts to force a change in Fed policy. The controversy is as much about the Trump administration’s desire to install a more compliant Fed Chair as it is about the specifics of the renovation scandal 12345.
Happy Birthday America! I suggest all of you read “The Trial” by Kafka – just to make sure you are ready for when you get picked up for crossing the President and find yourself in Alligator Alcatraz – or worse!
Have a great weekend,
— Phil
