A top official at the Treasury Department blamed a weaker-than-expected economic report on tax policy uncertainty, which he said could be cleared if Congress passes President Donald Trump’s sweeping domestic policy bill.
The US private sector lost 33,000 jobs in June — the first decline in payrolls since 2023, according to payroll firm ADP.
Joseph Lavorgna, counselor to the Treasury secretary, told CNN in a phone interview that ADP “isn’t particularly good” at forecasting the official jobs report, echoing other economists. The jobs report is set to be released tomorrow by the Labor Department.
Still, Lavorgna conceded that the jobs market has cooled, a trend he blamed on uncertainty linked to the speed and timing of tax policy.
Lavorgna expressed hope that Congress will approve Trump’s agenda bill in the coming days, leading to “much stronger” economic growth in the second half of the year.
“You’re going to get a big pipeline of activity coming through,” he said.
Lavorgna downplayed trade policy uncertainty and predicted a flurry of trade agreements following the one announced by Trump on today with Vietnam.
“This could be like a traffic jam: Once you get through, everything flows. I think a lot of deals could get done quickly,” he said.
